Tesla cuts prices in China due to competition

Tesla has slashed the prices of its cars in China by about 5 percent, the company announced. China is one of the most important markets for Tesla. However, the Americans are increasingly bothered by Chinese EV brands, such as BYD. That company sold more than 200,000 cars in China last month, a record number. In addition, several manufacturers have joined, such as Nio and Xpeng, who have been working on bringing more and more models to the market. Chinese manufacturers accounted for 80 percent of domestic electric vehicle sales in the first seven months of the year.

Tesla’s price cuts apply to the popular Model 3 and Model Y, among others. “Competition among electric car manufacturers is very fierce this year. That is why Tesla has decided to deal a blow to its competitors with this price reduction,” says a market expert from a consultancy in Shanghai. Earlier this year, Tesla made price increases in China. Tesla recently expanded the production capacity of its factory in Shanghai. About 1 million Teslas can roll off the production line there every year.