Tesla solved its low-demand problem in China with aggressive price cuts that essentially passed the problem to its rivals. Traditional carmakers have refused to follow suit immediately, but are now forced to slash prices after their sales collapsed.
Tesla started the year with massive price cuts in China, the world's biggest EV market, in a bid to solve what appeared to be a demand problem. After an initial shock, the market settled, with few other carmakers willing to follow in Tesla's steps. The price cuts helped the American EV maker energize sales, even though they caused an uproar among its customers. People were furious that they had to pay more for the same cars just weeks before Tesla adjusted the prices.
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