Tesla is slashing its prices in China

Tesla has dramatically cut prices for its China fleet in recent months, seeking to undercut domestic competitors. The first price reduction on vehicles built at its Shanghai factory came in October, followed by another in January.


That makes the locally manufactured cars about 14% cheaper year-over-year, and almost 50% less expensive than Teslas sold in the US.

At least 30 electric vehicle companies, both domestic and foreign, were forced to slash prices to keep up with the Tesla discounts, according to a report from Bloomberg. Some Chinese manufacturers, like Xpeng and Nio, offered reductions of as much as 70,000 yuan ($10,000), while the Ford Mustang Mach-E is currently a third cheaper than it is in the US.


In response, the China Association of Automobile Manufacturers called for a pause on the discounts in a Chinese state media report, warning that “attention should be paid to prevent such acts from devolving into price wars.”

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