Tesla has announced this Wednesday a price reduction in the Chinese market, the second so far this week, thus rekindling the price war in the car manufacturer sector, according to Europa Press.
Specifically, the company has reduced the cost of its S sedan model and the X sports car by up to 70,000 yuan (8,793.60 euros), leaving them at 754,900 yuan (94,832 euros) and 836,000 yuan (105,020 euros), respectively, as published by the marks this Wednesday in his official account on WeChat and has picked up Bloomberg.
This new price reduction by the American company comes just two days after the reduction in the ‘long range’ and ‘performance’ versions of its Y SUV model and that it extended the insurance subsidy for the base version of its model 3.
These reductions by Elon Musk’s company could accelerate a price war in the world’s largest car market and put pressure on other premium manufacturers such as BMW AG and Mercedes-Benz Group AG.
As Bloomberg has collected, Tesla’s shares fell 1.3% at the start of ‘premarket’ trading this Wednesday. Additionally, Tesla’s shipments from its plant in China were down 31% in July, the lowest level of the year. In fact, the company has announced a reduction in its global production in the third quarter.
In turn, the company’s CEO already assured last month that Tesla would have to continue reducing its prices if interest rates continued to rise.
