The Strategist

FT: Tesla cut its prices in China to increase competitiveness

08/17/2023 - 03:35

6.9% price reductions were introduced in the premium S and X model categories, the newspaper claims.

Tesla has reduced the price of models made for the Chinese market in an effort to take up more market share and unseat regional rivals, writes The Financial Times.

On Monday, the business "reduced the prices of various models of electric cars," including by 6.9% in the area of premium models S and X, according to its information. The latter are currently available locally for 754.99 and 836.9 thousand yuan ($103 thousand and $115 thousand, respectively).

China has grown to be one of the corporation's most significant markets (the nation represents roughly a third of the company's yearly revenue). Elon Musk, the company’s CEO, stated in July that it "may sacrifice margins in order to produce more cars," suggesting that Tesla "will go for further price cuts [for its products] this year" in an effort to increase its market share.