Tesla cuts prices of Model S and Model X cars in China to absorb trade war tariffs
- The Model S sedans and Model X SUVs will see their priced reduced by 12 to 26 per cent
- The carmaker says it is absorbing part of the tariff imposed by Beijing on American-made cars
Tesla has cut the prices of its cars by up to a quarter in mainland China, four months after it increased them to offset the tariffs imposed by Beijing as part of the US-China trade war.
The bestselling American electric carmaker said the move was aimed at making its models more affordable to Chinese customers.
The Model S sedans and Model X SUVs will see their prices reduced by 12 to 26 per cent from Thursday, the company said in a statement.
In July, Tesla raised the prices of the two models by about 20 per cent on the mainland after Beijing slapped an additional 25 per cent tariff on American-made vehicles, a retaliatory measure against the US administration as trade tensions between the two countries escalated.
“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.
The price of the Model S 75 D comes down by 104,700 yuan (US$15,000) to 782,900 yuan, while the Model X 75 D has a new price tag of 861,800 yuan, down 113,900 yuan from four months ago.