Wed. Nov 20th, 2019

Tesla slashes car prices in China

1 min read

Tesla has just announced that it is reducing prices for both the X-type SUV and the S-sedan in China due to China’s sharp import duties as China’s tariff increases hurt Tesla and its plans to expand into the Chinese market. The price cut means company will absorb part of the customs duties to help keep its vehicles attractive to potential Chinese buyers. This move refers to the shift from July when Tesla w raise prices in the market in response to customs duties.
Tesla warned last month that it was facing major problems in car sales in China because of new tariffs that would force it to accelerate investment in its first overseas Gigafactory in Shanghai.  Now, Tesla says it will bear most of the cost of customs duties in an attempt to attract customers in the world’s largest electric car market. Last month, the automaker secured the site for the facility, helping to avoid high tariffs on imports.

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