Tesla cuts prices nearly $2,000 in China, in line with US cuts

Beijing, Apr. 21 (BNA): Tesla has cut prices by nearly $2,000 across its models in China, after price cuts in the United States, as it struggles with falling sales and an intensifying price war for electric vehicles (EVs), especially against cheaper Chinese EVs.

 

Tesla stated this month that its global vehicle deliveries in the first quarter fell for the first time in nearly four years, as price cuts failed to stir demand, Reuters reported.

 

Tesla made similar cuts to the Model Y starting price, now 249,900 yuan, the regular version of the Model S to 684,900 yuan and the Model S Plaid to 814,900 yuan. The regular Model X now costs 724,900 yuan and its plaid variant 824,900 yuan.

 

The carmaker on Friday cut U.S. prices of its Model Y, Model X and Model S vehicles by $2,000. On Saturday, it slashed the price of its Full Self-Driving driver assistant software to $8,000 from $12,000 in the United States.

 

The EV maker has been slow to refresh its aging models as high interest rates have weakened consumer desire for big-ticket items, while rivals in China, the world’s largest auto market, are rolling out cheaper models.

 

Elon Musk’s EV maker cut the starting price of the revamped Model 3 in China by 14,000 yuan ($1,930) to 231,900 yuan ($32,000), its official website showed on Sunday.

 

Tesla shares fell 40.8% this year.

 

 

FG