the price of its model 3 was trimmed both in china and germany by about $2,000. all this comes after the ev—maker reported a fall in global deliveries for the first time in four years last quarter. elon musk�*s company has also been grappling with declining sales and a price war in the world's largest auto market — china. tesla will report its quartelry results later this week. david bailey is professor of business economics at the university of birmingham. no great surprise, we know that tesla is struggling to shift the vehicles. but quite a significant cut designed to get those sales numbers back up. fix, cut designed to get those sales numbers back up.— cut designed to get those sales numbers back up. a difficult quarter for tesla, numbers back up. a difficult quarter for tesla. a — numbers back up. a difficult quarter for tesla. a bumpy _ numbers back up. a difficult quarter for tesla, a bumpy road. _ numbers back up. a difficult quarter for tesla, a bumpy road. we - numbers back up. a difficult quarter for tesla, a bumpy road. we also i numbers back up. a difficult quarter. for tesla, a bumpy road. we also saw a recall of their truck. the price cut they did before a year ago, it hasn't omitted sales and as it looks

at the moment, deliveries for this year are likely to be less than last year. a challenging environment, the ev market globally is slowing and lots more competition is rising particularly in china which can make electric vehicles at low cost. talk to me about _ electric vehicles at low cost. talk to me about that _ electric vehicles at low cost. talk to me about that competition, if people are thinking of making a switch, given the cost of living crisis, they might think they can't afford tesla, they should go for a cheaper chinese one, is that hurting the bottom line? we cheaper chinese one, is that hurting the bottom line?— the bottom line? we are seeing a wave of chinese _ the bottom line? we are seeing a wave of chinese cars _ the bottom line? we are seeing a wave of chinese cars in _ the bottom line? we are seeing a wave of chinese cars in europe, l the bottom line? we are seeing a l wave of chinese cars in europe, the ports are full of chinese electric vehicles. they are not only cheap, they are good quality. if you look at the cars, china has been making electric cars for 25 years, they have scale and experience and they can produce at low cost. that is a

massive challenge and there is a? 0ver tesla's strategy. their strategy has been about scale and cost, can they compete with the chinese? they have been aiming for a cheap, $25,000 car, that seems to have been postponed and they are going more into autonomy. investors aren't that convinced, _ going more into autonomy. investors aren't that convinced, i'm _ going more into autonomy. investors aren't that convinced, i'm looking - aren't that convinced, i'm looking at the numbers, shares down by 40% since the start of the year. do you think a price cut is enough to win back the confidence of consumers given the competition and people not having money?— having money? there is a huge cost of livin: having money? there is a huge cost of living squeeze _ having money? there is a huge cost of living squeeze that _ having money? there is a huge cost of living squeeze that is _ having money? there is a huge cost of living squeeze that is taking - of living squeeze that is taking place in many european countries, tesla have to cut prices, from the point of view the consumer, prices coming down is great. but the chinese can go much further. so there is a question mark about how far tesla can go. if they go down

the robot taxi route, which is propped up their share price, i don't think it will work. tesla share price in particular is being judged as a car—maker rather than a technology company. an judged as a car-maker rather than a technology company.— technology company. an interesting distinction. what _ technology company. an interesting distinction. what happens _ technology company. an interesting distinction. what happens next, - technology company. an interesting distinction. what happens next, is l distinction. what happens next, is this a race to the bottom? we know that tesla reshaped the market for electric vehicles, it made it desirable. ultimately, it will be a competition on price, wanted? particularly in the mass market, they can differentiate themselves in they can differentiate themselves in the premium market but that is not where the sales volume will be. the question is, can tesla reduce its price and its costs fast enough to continue making profit? 0r price and its costs fast enough to continue making profit? or are they going to be outcompeted by the chinese. we going to be outcompeted by the chinese. ~ ., ~ going to be outcompeted by the chinese. ~ . ~ ., chinese. we will talk about it aaain. chinese. we will talk about it again. thank _ chinese. we will talk about it again. thank you _ chinese. we will talk about it again. thank you very - chinese. we will talk about it again. thank you very much. | now we've all heard of off—shoring — shifting production or operations overseas to cash in

on cheaper labour costs or favourable tax regimes. but what happens when that shifts back the other way? it's called near—shoring and it's given mexico a major boost as the trade war between china and the us hots up. scores of chinese companies have been taking advantage of conditions in northern mexico to get around us sanctions on chinese goods by making those same products in mexico instead. at the same time, some big us firms have relocated from asia to mexico. so what are the pros and cons? 0ur mexico correspondent, will grant, reports. made in mexico but owned by china. the sofas of the manoa furniture company are part of the buzzword in mexican business near—shoring. this is one of scores of chinese companies relocating to industrial parks in northern mexico to bring production closer to the us market. as well as saving on shipping, the final product is considered 100% mexican, meaning they avoid tariffs and sanctions imposed

on china amid a worsening trade war with the us. the general manager says the move to mexico makes economic and logistical sense. they already employ a50 people and have ambitious plans to expand. "we hope, to triple or even quadruple production," he says. "the intention here in mexico is to bring our production levels up to that of our factories in vietnam." whether it's furniture, t— shirts or car parts, the proximity to the us and the skilled labor force here makes mexico an attractive prospect to chinese companies. and as more chinese firms reach that same conclusion and set up factories here. it's been an important shot in the arm to the mexican economy, particularly post the covid pandemic. the sofa factory is located inside a chinese—mexico industrial park in the city of monterrey. demand for plots is sky—high, with every available

space already sold. little wonder many economists say china's interest in mexico is no passing fad. the question is not if this trend will continue, but rather how much of that trend we can take advantage of. because just as mexico is thinking and we are having this conversation here, i am sure that some people are having the same discussion in colombia, in vietnam, in costa rica. amid the near—shoring, us firms like tesla have announced plans to set up in mexico too, helping the country replace china as the us�*s main trading partner. the next tesla gigafactory will be in mexico near monterey. it's a significant change, but some urged caution over being drawn into the wider geopolitical struggle. the old rich guy in town, i the united states, is having problems with the new rich guy in town, china. _ mexico does not have it. lalso, the current administration, | we don't have a strategy vis—a—vis

china and how to deal into this new triangular relationship. i whether a back door to the us or part of a costly war between the superpowers. near—shoring is here to stay, and mexico must be pragmatic if it's to reap the long term benefit of this new, often hostile global trade arrangement. a us ban on tiktok moved a step closer over the weekend as the house of representatives passed a bill effectively prohibiting it, unless its chinese owner sells its stake within a year. fears that the data about millions of american tiktok users could wind up in chinese hands has driven the us to demand the firm splits from its beijing—based parent—company, bytedance. tiktok says bytedance "is not an agent of china or any other country" and points out the firm is 60 percent owned

by global investors. let's get more isabel hilton is the founder of china dialogue. let me ask you that question, where does tiktok go from here? the us seems intent on pushing this band through unless it meets that deadline. it through unless it meets that deadline. , , ., ., deadline. it seems to me that bei'ina is deadline. it seems to me that beijing is trying _ deadline. it seems to me that beijing is trying to _ deadline. it seems to me that beijing is trying to have - deadline. it seems to me that beijing is trying to have it - deadline. it seems to me that| beijing is trying to have it both ways. it is saying no we are not chinese, but they are also saying the chinese government won't let them sell. so which is it? if it is just ordinary global media business, there is no political reason why bytedance should not divest. if that were to happen, tiktok could continue to be used by hundred and 70 million american users.- 70 million american users. tiktok sa s that 70 million american users. tiktok says that given — 70 million american users. tiktok says that given the _ 70 million american users. tiktok says that given the number- 70 million american users. tiktok says that given the number of- 70 million american users. tiktok i says that given the number of users, if it was banned, it would trample on free speech. is that an argument

thatis on free speech. is that an argument that is relevant? mat on free speech. is that an argument that is relevant?— that is relevant? not really. if you look at when _ that is relevant? not really. if you look at when tiktok _ that is relevant? not really. if you look at when tiktok was _ that is relevant? not really. if you look at when tiktok was banned i that is relevant? not really. if you | look at when tiktok was banned in india in 2020 after a violent border clash with china, they had 300 million users in india, india banned all chinese social media after 20 indian soldiers were killed on the border. it was done very suddenly. what happened was that it was not the end of the short video market because there are options. you can express yourself just as well on short reels, on other platforms. and thatis short reels, on other platforms. and that is what happened in india. there was a slight difference noted in smaller content creators had to make adjustment but there wasn't a ban on short videos, it is just that platform. ban on short videos, it is 'ust that latform. . ., ~ ,

ban on short videos, it is 'ust that latform. . . ~ , ,, ., platform. lawmakers in the us are 0 ticall platform. lawmakers in the us are optically nervous _ platform. lawmakers in the us are optically nervous about _ platform. lawmakers in the us are optically nervous about an - platform. lawmakers in the us are optically nervous about an outrightj optically nervous about an outright ban, voting 360—58 to ban it or divest it. at the same time it was packaged without bill would offer aid to ukraine and israel. giving a sense that they wanted to push it through without garnering too many headlines. i through without garnering too many headlines. ~ ., , through without garnering too many headlines. ~ . , ., ., headlines. i think that is a fair oint but headlines. i think that is a fair point but it — headlines. i think that is a fair point but it has _ headlines. i think that is a fair point but it has been - headlines. i think that is a fair point but it has been under. point but it has been under discussion for more than a year and tiktok has tried very hard to persuade american legislators that there was no security issue. clearly, that didn't work. it is absolutely fair to say that there is absolutely fair to say that there is a heightened sense of confrontation between the united states and china but i don't think that would have been enough. i think there are serious concerns in election year, both about influence and data. tiktok doesn't have entirely clean hands on data and on acting in ways that a commercial company wouldn't entirely do, were it not trying to

please a political entity. the . uestion please a political entity. the question is. _ please a political entity. the question is, is _ please a political entity. the question is, is this - please a political entity. the question is, is this a - please a political entity. the question is, is this a stand—off, the us was to look strong in the face of concerns about china and china's dominance in trade and computer chips and components. ultimately, we will get some form of compromise, is that your assessment? i think they will be quite serious about tiktok, i think it is up to bytedance to look at divestment if it wants tiktok to survive. this is being talked of as if it is a ban, there is an option here, it is not an option that is impossible if the government in beijing permits it. if it doesn't permit it, as i say, it strengthens the american case. it is going to be a large kerfuffle, but i think it will get through. goad going to be a large kerfuffle, but i think it will get through.— think it will get through. good to talk to you. _ think it will get through. good to talk to you, grateful _ think it will get through. good to talk to you, grateful for - think it will get through. good to talk to you, grateful for your - think it will get through. good to l

talk to you, grateful for your time. much more on those stories, online, and on tv. see you soon.

hello, i'm chetan pathak with your latest sports news. we start with the fallout from sunday's heated el classico in spain. barcelona manger xavi says it's a disgrace that goalline technology isn't used in la liga like it is in the english premier league — after his side were beaten 3—2 at real madrid. jude bellingham scored a stoppage time winner as real twice came from behind to go 11 points clear at the top of the table with six games to go but xavi was furious that barca had a goal disallowed because var 0fficals said they couldn't prove that lamine yamal�*s effort had crossed the line.

yesterday, you also asked me about the referee, i told you that i wanted them to be unnoticed and make the right decisions, he failed on both. it is a pity. my feeling is that today has been unfair and everybody has seen it, the match has been unfair, that is my feeling and i cannot lie, especially to our fans. today it has been unfair and everybody has seen what has happened. var denied coventry city arguably the greatest fa cup comeback in history — after trailing manchester united 3—0 in their semi final — they thought they'd scored an extra time winner to make it 4—3 — only for the goal to be ruled out for off—side. in the end... united won it on penalties — with their manager erik ten hag admitting afterwards that his side got away with it. with continued speculation around his future at the club after an indifferent season, he says he's confident his side can upset manchester city in next month's final. when we have a good plan and we have 100% belief in the plan,