Tesla has announced that it will cut the prices of its Model X and Model S vehicles in China by 12-26% in order to make its cars more affordable. The decision comes months after the firm raised prices by 20% in China in order to compensate for the new tariffs – the decision back then may have been too ambitious so now the firm is willing to take a hit financially in order to boost sales.
In a statement to Reuters, a Tesla spokesperson said:
“We are absorbing a significant part of the tariff to help make our cars more affordable for customers in China.”
Hopefully, Tesla will be able to lower prices further for Chinese customers in the future; earlier this month, the firm announced that it wanted to boost production of the Model 3 line-up by producing the vehicle at the in-development Gigafactory 3 which will be situated in Shanghai, China. If the firm ever decides to build Model S and Model X vehicles there it’d mean Tesla could skirt around the tariffs.
Whatever happens with trade relations between China and the U.S., Tesla will be keen to keep prices as low as possible in the Asian nation because it is the largest market for electric vehicles.
Source: Reuters