Tesla inflated prices for Model S and Model X in China due to trade war

Tesla inflated prices for Model S and Model X in China due to trade war

July 10, 2018 0 By autotimesnews

American manufacturer of machines Tesla decided to increase the cost of models Model S and X in the Chinese market by more than 20 thousand dollars. This is a retaliatory strike after the introduction of China’s duties on imports of goods from the United States, including electric vehicles.

According to the publication Electrek, over the weekend, the cost of Model S and Model X, depending on the configuration increased by 150-250 thousand yuan (about 22.6-37.6 thousand dollars). And this is a good price difference.

What was the reason for such price chaos? Recall that from July 1, China reduced duties on imports of cars from other countries from 25 to 15 percent. But last weekend, the fees “grew” to 40 percent in response to the US actions in relation to Chinese goods. At the end of spring Tesla even made a special offer and sold the Model S and Model X for 40 000-90 000 yuan cheaper, which is 6000-14 000 dollars. But already on July 6, the United States imposed duties on the supply of Chinese goods for $ 34 billion. Beijing did not wait long and struck back.

It is worth noting that the Tesla brand cars enjoyed considerable demand among Chinese motorists and sold well even with 25 percent duties.

Last year, China accounted for about 17% of Tesla’s revenue. More than 15,000 cars worth $ 2 billion were sold. Now, obviously, the high price will negatively affect the sales of the American brand

Tesla, in turn, plans to build a plant in the free economic zone of Shanghai. Perhaps this will help at least somehow to save sales in the local market. It is possible that this will not be a stationary enterprise, but production under an awning, as it happened in America. In the “tent” with a size of 300 meters and an area of ​​12.8 thousand square meters is currently assembling 4-wheel drive Model 3.