In less than three months, Tesla has again reduced the price of electric cars for the Chinese market. That makes Telsa cars more than 40 percent cheaper in China than in the U.S. market. News Reuters.
It is reported that on Friday (January 6), Tesla reduced the price of electric cars in China for the second time in less than three months. The company took this decision mainly because of the decrease in sales.
A person related to the matter told Reuters that the decision was made to reduce the price of electric cars in the Chinese market to increase the demand for cars produced at the company’s single largest factory in Shanghai.
According to Bloomberg, the price of Tesla cars in the Chinese market is cheaper than the US market which is more than 40 percent.
According to the company’s China website, the starting price of Tesla’s locally produced Model Y sport utility vehicle has dropped from 288,900 Yuan to 259,900 Yuan. Which is 37 thousand 875 dollars in US currency. This standard-range, rear-wheel drive version costs 43 percent less than most base Model Y vehicles sold in the U.S. market.
Meanwhile, on Friday, the price of Model Three cars was also reduced from 265 thousand 900 Yuan to 2 lakh 29 thousand 900 Yuan which is about 30 percent less than the price of the same model car sold in the US market.
Earlier, Tesla had reduced the price of the car last October. Meanwhile, the company’s share price fell 6.4 percent to $103.25 before trading began on Friday.
In addition to China, Tesla has cut the prices of its best-selling Model Y and Model 3 electric cars in Japan, South Korea and Australia.