Tesla's share drops by 7.5 percent following price cuts in China

Christmas Eve was a rough day for the US stock market particularly Tesla. The stock prices for the company fell by 7.6 per cent after it cut the Model 3's price in China. CEO Elon Musk has promised to reimburse US customers if they miss a tax credit deadline due to Model 3 shipment delays. 

As per a report from Reuters, Model 3's prices on Tesla's China website had been reduced by up to 7.6 percent (about 72, 000 Dollars).  This is the third time since November that the company has lowered the prices of the vehicles in China. 

The first slash was in November, when Tesla slashed the price of Model X and Model S vehicles by 12 to 26 percent, stating that it was “absorbing a significant part of the tariff to help make cars more affordable for customers in China.” Then in December, Tesla cut Model X and Model S prices again, citing China’s decision to temporarily suspend a new 25 per cent tariff on American-produced vehicles and auto parts as the two countries reached a ceasefire in the trade war.

In October, Tesla announced on its site that if U.S. customers needed to order a Model S, Model X, or Model 3 before October 15 if they wanted the full $7,500 federal tax credit, which begins to phase out once a manufacturer sells 200,000 qualifying vehicles in the U.S. 

On Sunday, Musk tweeted in response to a question that if a customer’s pre-December order isn’t delivered before the end of the year, Tesla will reimburse the tax credits they missed out on.

 

 

{{getArticleReviewList.length}} Comments
{{item.FirstName}} {{item.LastName}}

{{item.LastActivityOn | date:'dd MMM, yyyy hh:mm:ss a'}}

{{item.Description}}

Post Comment

Please enter first name.
Please enter at least one latter.