Tesla shuts down protesters – no compensation for price drop

Tesla is shutting down buyers in China who are protesting after missing out on significant price drops in the country. The company stated that it will not compensate them.

Last week, we reported on Tesla slashing prices in China, which raised demand concerns for the automaker in the important EV market.

The price drops on some Model 3 and Model Y trims were significant.

It resulted in many recent Tesla buyers protesting the price drop at Tesla stores as they claim Tesla misled them into buying at the end of last year while knowing the price drop was coming.

The protesters have continued their activities at Tesla stores and Tesla’s Shanghai factory throughout the weekend.

Yesterday, Tesla jumped on a WeChat group used by the protesters with its official account to tell them that they don’t plan to offer any compensation to buyers who took delivery last year.

Some claim that they will continue their effort despite Tesla shutting them down. One of the protesters at the Tesla Gigafactory Shanghai this weekend told the media:

We trusted the brand so much that we cancelled our orders for other brands for Tesla.

Separately, local reports in China, which we take with a grain of salt, are reporting that Tesla’s price drops are working in the market, with estimates ranging between 10,000 and 30,000 orders since the price drop.

The impact has been seen in Tesla’s Model 3 and Model Y delivery timelines, which have increased a bit over the last few days.

Electrek’s Take

I know it’s hard for many Tesla fans to sympathize with the protesters. I understand. They agreed to a price and bought it fully knowing the terms. Plus, there hasn’t been much protesting after the many other price increases from Tesla in China over the last two years.

However, I am sure you can understand how frustration could arise if your Tesla adviser told you that there will be no upcoming price drop and that’s what convinced you to go ahead with your order.

That’s what many protesters are claiming.

With that said, I don’t think protesting will lead to anything. Tesla already made clear that they will not compensate people, and historically (and there’s a lot of history of Chinese Tesla customers protesting), it has never led to anything positive for customers.

On top of it, Tesla has been trigger-happy in suing people in China lately. I am not saying it’s warranted in this case, but I’d be careful.