Tesla slashing prices in China

Tesla slashing prices in China
Tesla is making a new move to keep its foothold in the Chinese market.
The electric-car maker is cutting prices for the second time this year by up to 26 percent.
Why now?
Tesla’s business in China has been troubled by tariffs.
The company cut prices back in May when China promised to reduce tariffs on imported cars.
In July, when the trade dispute escalated and China ramped up tariffs on U.S.-produced cars, Tesla said that it would have to pass some of the costs on to the consumer.
Tesla has now reversed course the company says to stay competitive.
China is the world's biggest market for electric cars. The country already accounts for 20 percent of Tesla's sales.
Tesla is also keeping an eye on local competition from the likes of BYD and NIO that could undercut Tesla on price.
The company is also building a Gigafactory in Shanghai. It will be its first facility outside of the U.S. and that will allow it to avoid tariffs and significantly ramp up production into that market. Tesla says that it wants to accelerate those plans, but for a facility on this scale it will still take several years.
The basic Model S version of the car now costs 782,900 yaun ($113,000) according to CNN. That price is down from 849,000 yaun ($112,525).
The most expensive version of the Model X has gone from 1.57 million yuan ($227,000) to around 1.2 million yuan ($171,000), according to CNN.

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