Tesla's Stock Drops as EV Maker Offers New Incentives and Faces Declining China Shipments

Tesla's stock fell over 5% after announcing new discounts and price cuts on its vehicles in China and the U.S., including incentives of up to $5,000 in China and 5,000 miles of free Supercharger use in the U.S. The company has been engaging in a price war to boost EV demand and compete with local rivals in China, while also working on a next-generation EV for production next year. These moves come as car discounts and incentives have returned in the market, with Tesla's stock down 23% this year compared to an 8% gain for the S&P 500 index.