Tesla To Reduce Car Prices In North America And China

Tesla Inc. TSLA announced price cuts for all electric vehicles on Wednesday. The reduction will come into effect after coronavirus lockdowns are eased.

What Happened

The prices will be reduced by 6% in North America, according to Reuters. The demand for Tesla cars has dwindled during the lockdowns.

Why It Matters

Tesla is also cutting the cost of its cars in China, which is usual after price changes in the United States, Reuters reports.

Tesla announced that reductions will be made in prices of both Model S and Model X cars, which are imported into China on Weibo, a Chinese microblogging website.

The base prices would be lowered simultaneously by nearly 29,000 yuan or $4,052.

No changes will be made to the price of Model 3 cars, which are manufactured locally. Tesla had already reduced the prices of that model by 10% to qualify for subsidies in early May. 

Data indicates that Tesla’s new car registrations slipped in China to 4,633 units in April from 12,709 units in March, a fall of 64%.

Tesla Price Action

Tesla shares traded 0.14% higher at $819.98 in the after-hours session on Tuesday. The shares had closed the regular session 0.24% higher at $818.87.