Tesla must cut prices in China due to fierce competition

US company Tesla has been forced to cut prices in China due to tougher competition. The prices of its electric cars there have been reduced by around 5%, the group announced.

China is one of the most important markets for Tesla. However, Americans are increasingly concerned by Chinese electric car producers, such as BYD.

This company sold a record number of cars in China last month: more than 200,000 units. In addition, several manufacturers have joined this initiative, such as Nio and Xpeng. They are making great efforts to market more and more models.

Chinese automakers accounted for 80 percent of domestic electric car sales in the first seven months of the year.

Tesla’s price cuts apply to the popular Model 3 and the Y SUV, among others.

Strike a blow to its competitors

“Competition among electric car manufacturers is very fierce this year. Therefore, Tesla has decided to strike a blow to its competitors with this price dropsaid a market expert from a consulting firm in Shanghai.

Earlier this year, Tesla implemented price increases in China. The group recently increased the production capacity of its Shanghai factory. Around one million cars can now be produced there every year.

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