Tesla Inc. yesterday officially announced that the company is going to cut the prices of its model 3 cars in China by more than 7.9 percent. The California based electric vehicle maker Tesla Inc. yesterday revealed that the company is going to cut the prices of its Model 3 cars in China to increase the sale of those units. The starting price of the Model 3 vehicles is going to be 490000 yuan ($72000). However, this is not the first time Tesla has reduced the costs of its cars because a few days ago the company cut the prices of its vehicles to end the trade war between the US and China. A few days ago China reduced the extra tariffs on the US making electric cars due to which now it’s going to be easy for the Tesla Inc to sell their products at high-profit margins in the Chinese market.
Between the period of trade war it was getting hard for Tesla Inc to sell their electric cars in the Chinese market because at that time China was imposing more than 40 percent of taxes on the US made cars. In order to survive in the Chinese market Tesla during trade war raised the prices of its vehicles but now since the trade war is stopped the company has decided to reduce the rates of famous Model 3 Tesla cars.
From last November the company has reduced the prices of its electric vehicles by more than 12-16 percent because of which the company is now getting a good response from the Chinese market. While further talking about this issue the officials of the company said that the company is now can afford to offer its cars at low prices because of the reduction in extra taxes.