The ranking war has begun in China over electric cars. China is the biggest buyer of electric vehicles, that is the biggest market. Tesla reduced its prices when it exited the Shanghai factory. In other words, it wants dominance in the market by lowering the price. Locally produced vehicles are in sale at 14% cheaper. There are even models that sell some of their vehicles 50% cheaper than in America and Europe. It also exposes smaller manufacturers such as Xpeng Inc and Nio Inc to do so. Likewise, Volkswagen & Mercedes, which are among the big global sellers, have to have a sales price of 10,000USD for accompanying electric use. What Tesla did is a kind of plundering. Along with these listed manufacturers, about 30 other small manufacturers have to follow Tesla in order to compete with it due to the price cut. This can be challenging for small producers. It will be unlikely to push it into a monopolist system, as long as manufacturers like VW and Mercedes exist. However, due to the structure of the existing market, it is advancing with the potential to become a leader. China is the country that buys the most electric vehicles, and the potential leadership here can create a positive momentum in its share values.
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