Tesla lowers electric car prices in China
Tesla will lower the prices for the Model S and Model X in China by between 12% and 26%. The plan is to compensate for import tariffs, caused by the rift between the current U.S. administration and China. This means that Tesla’s BEVs will be more affordable in the far east.
Over the summer, the prices for both Tesla electric vehicles had increased by about 20 percent due to said taxes. This led to a drop in sales and Tesla has been hit particularly hard by the trade war, as the company only sells imported vehicles on the Chinese market.
Tesla now reacted by lowering the prices. “We are absorbing a significant part of the tariff to help make our cars more affordable for customers in China,” Tesla said in a statement sent to Reuters.
This is set to change before long, however, as the Californian manufacturers are setting up a Gigafactory in Shanghai.
Despite the uncomfortable political climate, Tesla plans to begin importing the Model 3 to China in March 2019, which will be limited to the long-range version of the vehicles at first. The configurator for the Model 3 will be opened for access in China as well as Europe this year, most likely.
In their most recent business report, Tesla announced their plan to move up the local production plans in China, with the first Model 3’s being constructed in Shanghai before the end of 2019.
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