Mexican Media Brands
Tesla Cuts Prices in China
Tesla Inc. is lowering the price of its electric Model S sedans and Model X crossovers in China to help offset the country’s tariff on vehicles from the U.S.
#economics
Share
Tesla Inc. is lowering the price of its electric Model S sedans and Model X crossovers in China to help offset the country’s tariff on vehicles from the U.S.
In July Tesla raised priced on both models by about 20% when China hiked its tariff on cars imported from the U.S. to 25% from 15%. Tesla says its new price reductions will lower those prices by 12%-26%.
Last month the company was given permission to acquire land to build a wholly owned assembly plant in Shanghai. The $2 billion facility is expected to open in about 2020 and with annual capacity to make a combined 250,000 of the company’s new Model 3 sedan and upcoming Model Y small crossover vehicle.
The factory isn’t expected to open until about 2020. But Reuters reported last weekend that Tesla hopes to be able to begin local assembly much sooner of as many as 3,000 Model 3s per week.
Tesla began accepting 8,000-yen ($1,200) deposits this week for the Model 3. CEO Elon Musk predicts deliveries will begin in April.
RELATED CONTENT
-
Inside Ford
On this edition of “Autoline After Hours” Joann Muller, Detroit bureau chief for Forbes, provides insights into what she’s learned about Ford, insights that are amplified on the show by our other panelists, Stephanie Brinley, principal analyst at IHS Markit who specializes in the auto industry, and Todd Lassa, Detroit Bureau Chief for Automobile.
-
China and U.S. OEMs
When Ford announced its 3rd quarter earning on October 24, the official announcement said, in part, “Company revenue was up 3 percent year over year, with net income and company adjusted EBIT both down year over year, primarily driven by continued challenges in China.” The previous day, perhaps as a preemptive move to answer the question “If things are going poorly in China, what are you doing about it?, Ford announced that it was establishing Ford China as a stand-alone business unit.
-
Report Forecasts Huge Economic Upside for Self-Driving EVs
Widespread adoption of autonomous electric vehicles could provide $800 billion in annual social and economic benefits in the U.S. by 2050, according to a new report.