Tesla (TSLA) Reduces Price For Model 3 Vehicle In China
Zacks Investment Research | Dec 23, 2018 09:28PM ET
Tesla, Inc. (NASDAQ:TSLA) has lowered the price of its flagship Model 3 electric vehicle (EV) in China, per Reuters. This Palo Alto, CA-based EV pioneer announced that certain Model 3 EV prices were reduced by up to 7.6%. After this price cut, the starting price of Model 3 sedans in China now stands at 499,000 yuan ($72,000).
China offers huge prospects for EV manufacturer like Tesla. However, Tesla’s high dependence on imports at times of high import tariffs impeded its growth. The company intends to begin manufacturing vehicles in China by 2019 to keep a lid on expenses. The latest move to lower vehicle prices in the mainland reflects the automaker’s interest in China.
In fact, this is the third time in the past two months that Tesla has slashed vehicle price in China. In November, the company cut prices of Model X and Model S vehicles by 12-26% in China. Earlier this month, this automaker reduced Model S and Model X car prices in China. The price of Model S was cut by 105,000 yuan ($15,200) and Model X’s by up to 65,000 yuan. The possibility of China suspending additional tariffs on U.S.-manufactured cars and light trucks prompted Tesla to reduce its vehicles price in China.
In the past three months, shares of Tesla outperformed the Zacks Investment Research
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