Tesla lowers prices in China in line with tariffs
A recent drop in the import tariffs for cars from the U.S. (from 40% to 15%) prompted Tesla to reduce prices for some Model S and X electric cars in China. Tesla is thus “discounting” the Model S by 105,000 yuan (approx. 13,500 euros) and the Model X with up to 65,000 yuan (around 8,300 euros).
The story is set against the backdrop of an on-going trade dispute between the States and China. The government in Beijing had announced that it would suspend punitive tariffs on cars imported from the USA for three months. This will lower the import duty for these cars from 40 percent to 15 percent in the first quarter of 2019.
For Tesla, it is both a relief and also a further normalisation. After seeing their sales drop in China following the increase in tariffs, the Californians had compensated the price increase partly to remain somehow “affordable” (we reported).
The latest price cuts do not include top of the line models P100D.
Usually import tariffs on cars from the U.S. stand at 25% before having been increased to 40%.
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