Tesla Inc. is reducing the prices of its premium car models in China by nore than 4.5%, following a decision to hand out cash subsidies to some buyers of its Model 3 vehicles last month.
All variants of the Model S and Model X cars will be lowered by 35,000 yuan ($4,825) to 45,000 yuan, according to the automaker’s local website. The starting price of the Model S will be reduced to 773,900 yuan, and the Model X to 988,900 yuan, based on the website.
The price cuts, and the cash subsidy of 8,000 yuan paid out with its more popular models in China, are further evidence of Tesla’s determination to boost sales in the world’s largest and most competitive electric-vehicle market.
The Elon Musk-led carmaker is expected to report sales of around 448,350 cars in the second quarter, up 6% from the previous three months, according to analysts surveyed by Bloomberg
Tesla delivered more than 1.3 million cars worldwide last year and remains the dominant EV maker in the US. In China, however, its second-largest market, the company has fallen behind BYD Co., which has a fresher lineup and increasingly global ambitions.
