 "Tesla")
Tesla made its second round of price cuts in China this week, further fueling concerns the carmaker is reigniting a price war.
The company reduced the price of Model S sedans and Model X sport utility vehicles in inventory by as much as 70,000 yuan to 754,900 yuan and 836,000 yuan, respectively, according to a statement published on its official WeChat account on Wednesday.
The move comes just two days after Tesla marked down the Long Range and Performance versions of the Model Y SUV by 14,000 yuan and extended an insurance subsidy for the base version of the Model 3 sedan, keeping the perk in place through the end of next month.The cuts may further accelerate a price war in the world’s biggest auto market, and put pressure on premium carmakers such as BMW AG and Mercedes-Benz Group AG to follow suit. In addition to the discounts, other incentives including free fast-charging credits and trials of Tesla’s enhanced Autopilot system for referrals remain in place.
Tesla shares fell 1.3 per cent at the start of premarket trading on Wednesday. The stock has dropped 20 per cent since Chief Executive Officer Elon Musk warned of the potential for further price cuts during the carmaker’s July 19 earnings call. Musk said last month that Tesla would have to keep cutting prices if interest rates continue to rise. Tesla’s shipments from its China plant plunged 31 per cent in July to the lowest level this year.
The automaker announced last month that global production would drop in the third quarter due to downtime for factory upgrades, without offering specifics.
