Tesla’s share prices hit a new 52-week low after cutting the prices of its Model 3 and Model Y cars in China. The move comes as demand continues to drop in the country, where rival EV maker BYD beat out Tesla in 2022 year end deliveries. BYD has seen huge success with cars in the under-200,000 yuan segment, underscoring the need for haste in Tesla developing a lower-priced compact. Despite increasing deliveries by 40% in 2022, Tesla lagged Wall Street’s estimates by about 15,000 at 405,278 vehicles delivered; while increasing its inventory by 34,000. This is Tesla’s second price cut in 3 months, causing the company’s stock to drop over 7%. TSLA is down almost 40% in the last month.
Binance Joins to Improve Financial Compliance
The world’s largest cryptocurrency exchange, has announced that it has joined the Egmont Group, an organization of Financial Intelligence Units (FIUs) that aims to combat money laundering and terrorist financing. By joining the group, Binance will be able to share information with other member agencies, which will enable the exchange to improve its compliance standards and better detect suspicious activity. Binance’s membership in the Egmont Group comes at a time when the exchange is facing increased scrutiny from regulators over its compliance practices. The exchange has also recently announced that it is working on a decentralized exchange (DEX) and is exploring the possibility of launching a public blockchain.
Is China’s Consumer Market Bouncing Back?
It seems like China’s consumer market has not yet fully recovered to pre-pandemic levels, despite the country’s successful containment of the COVID-19 outbreak. While industrial production and exports have returned to pre-pandemic levels, consumer spending has lagged behind due to ongoing uncertainty about job security and income. Many Chinese consumers are also opting to save rather than spend, as the country’s stock market and housing prices continue to rise. The Chinese government has implemented measures such as tax cuts and increased infrastructure spending in an effort to boost consumer spending, but it remains to be seen whether these efforts will be successful.