• 212 days Could Crypto Overtake Traditional Investment?
  • 217 days Americans Still Quitting Jobs At Record Pace
  • 219 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 222 days Is The Dollar Too Strong?
  • 222 days Big Tech Disappoints Investors on Earnings Calls
  • 223 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 225 days China Is Quietly Trying To Distance Itself From Russia
  • 225 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 229 days Crypto Investors Won Big In 2021
  • 229 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 230 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 232 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 233 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 236 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 237 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 237 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 239 days Are NFTs About To Take Over Gaming?
  • 240 days Europe’s Economy Is On The Brink As Putin’s War Escalates
  • 243 days What’s Causing Inflation In The United States?
  • 244 days Intel Joins Russian Exodus as Chip Shortage Digs In
How Big Will The Next Real Estate Bust Be?

How Big Will The Next Real Estate Bust Be?

Bigger than the residential mortgage…

Airbnb IPO Under Threat As China's Economy Drags

Airbnb IPO Under Threat As China's Economy Drags

The coronavirus outbreak in China could derail…

Energy CEOs See Big Payouts Despite Oil Price Crash

Energy CEOs See Big Payouts Despite Oil Price Crash

The COVID-19 pandemic has hit…

  1. Home
  2. Investing
  3. Other

Tesla Cuts Prices As China Suspends Auto Tariffs

Tesla

Tesla has reduced the prices of its Model X and Model S vehicles sold in China, after the Chinese authorities suspended additional tariffs on U.S.-manufactured cars for three months starting January 1.

Tesla has cut the price of certain Model S cars in China by up to US$15,230 (105,000 yuan), while prices for some Model X vehicles have been reduced by up to US$9,430 (65,000 yuan), Reuters reports, quoting Tesla’s Chinese website.

The price cuts could help lift the sales of the U.S. electric vehicle maker in China, which were said to have plummeted in recent months over the tariff uncertainty and frequent price changes, due to the U.S.-China trade war.

As Washington and Beijing are trying to negotiate a trade deal amid a three-month trade truce, China confirmed on Friday that it would suspend for three months as of January 1 the planned 25-percent tariffs on 144 vehicles and auto parts made in the United States and 5-percent tariffs on another 67 car items.

Tesla, which doesn’t have local Chinese production yet, was among the first U.S. automakers to raise prices in China, due to the heated trade tariff war in the summer. As a result, reports have had it that Tesla’s sales in China plummeted by 70 percent in October in the latest demonstration of the adverse impact the U.S.-Chinese trade war is having on business.

China is a key market for Tesla where it plans to build a gigafactory, and in October it only sold 211 cars there, according to data from the China Passenger Car Association reported by Reuters.

In an email to Barron’s, a Tesla spokesman disputed the report of the 70-percent sales plunge, saying that the numbers obtained from an official at the association are “wildly inaccurate” and “off by a significant margin.”

Freeman Shen, chief executive at China’s electric vehicle maker WM Motor, said reports that Tesla’s vehicle sales in China plunged by 70 percent is “misleading information” because of the opaque and not always accurate sales numbers coming out of China. Shen told CNBC that Chinese car sales numbers are always “kind of a mystery” because data is collected through several channels.

But another China-based auto industry expert, Jacob George, vice president, and general manager of the Chinese branch of U.S. marketing intelligence company J.D. Power, said last week that the third-party data about Tesla’s plunging sales was accurate, as sales had suffered from frequent price changes in the latter half of this year.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Safehaven.com

Back to homepage

Leave a comment

Leave a comment