The starting price for two versions of the electric car giant’s Model Y will be around NOK 20,000 cheaper for Chinese consumers.
Automaker Tesla cut prices of its Model Y in the Chinese market starting Monday, according to a letter.
The price cut applies to Performance and Long Range versions of the Model Y.
The starting price of the two models has now been lowered by 14,000 yuan, which equates to just over NOK 20,000 at today’s exchange rate.
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It makes sense to sacrifice margin
He writes there is a drop of 4.5 percent for the Long Run and 3.8 percent for the Performance version Reuters.
In July, founder Elon Musk stated that Tesla could lower prices in the future due to Economically unstable times.
– Musk said at the time, I think it makes sense to sacrifice margin in order to make more compounds.
The announced price reduction comes in addition to several price reductions in the US, Chinese and other markets since last year.
Tesla shares have skyrocketed over the past year, but have fallen since mid-July. At the time of writing, it is trading at $242.65 (about NOK 2,500) — 17 percent lower than the peak on July 18.
tough times
Inflation and high interest rates caused problems for the auto industry last year.
Tesla also faced stiffer competition in the Chinese market from electric vehicle brand BYD.
Until now, the company’s strategy had been to lower prices for consumers, to ensure continued sales.
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