Home World Tesla is going to lower prices in China to compensate for US import duties

Tesla is going to lower prices in China to compensate for US import duties

Tesla is going to lower the prices of its electric cars in China to compensate Chinese customers for the import duties on American cars. The prices of the Tesla Model S and Model X are reduced by 12 to 26 percent.

Elon Musk’s company said it would compensate a significant part of the import levies to make cars more affordable for customers in China, the largest car market in the world with strongly increasing sales of electric vehicles.

In order to circumvent Chinese tariffs on US imports, Tesla is working on the construction of a large factory near Shanghai in order to be able to produce locally.

Last month, Tesla signed an agreement on the rent of a piece of land in China where the first ‘giga fabric’ of Tesla should be built outside the United States.

Currently Tesla still imports all cars that it sells in China. The company stated earlier that the import tariffs ensure that the company is making extra haste with the construction of the Chinese megafabriek. In this way, the costs for transport by sea must also be circumvented.

Recently the company started with the pre-sale of the new Model 3 in China.

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