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Price cut in China results in...Price cut in China results in fall of Tesla’s shares
The Silicon Review
26 December, 2018
Author:
Thesiliconreview
It wasn’t the happiest Christmaseve for US stock markets. Especially, it was a tough day for Tesla as its share prices had a huge fall. The stock price dropped by 7.6% after Tesla reduced the Model 3’s price in China. The initial price for Model 3 in China is now $72,000.
This is the third time since November that the company has reduced its automobiles’price in China. The first time was last month when the electric car maker cut the price of its two models, Model X and Model S by 12% to 26%. “It was absorbing a significant part of the tariff to help make cars more affordable for customers in China,”stated the company.Tesla slashed these models’ prices again this month. Tesla made this decision citing China’s announcement to temporarily suspend an additional 25% tariffs on US-made vehicles starting from January 1, 2019.
Back in October, Tesla posted on its official site that if US customers wanted full $7,500 federal tax credit, they needed to place their orders before 15th of October. Due to delay in the shipment of Model 3, CEO of Tesla, Elon Musk has promised to reimburse US customers for missing tax credits. Many customers questioned about Tesla’s policy in case their pre-December order doesn’t makein time, to which Musk responded that Tesla will reimburse the tax credits they missed out on.
