Tesla stock plunged 6% just after the company reduces prices in China

Tesla stock dropped Friday after the company reduced the price of two of its models in China, the automaker’s second price cut in three months as it battles dwindling demand in the country.

According to Reuters, Tesla cut prices on its China Model 3 by 13.5%, which now starts at $33,515, and its Model Y by 10%, which now starts at $37,899.

Following the news, the company’s stock dropped more than 7% at the open on Friday, setting a new 52-week low for the automaker.

Tesla stock has now dropped more than 40% in the last month and is now at its lowest level since August 2020.

Tesla’s price cuts come just days after the company reported lower-than-expected fourth-quarter vehicle deliveries, despite growing deliveries by 40% year over year in 2022.