Elon Musk‘s Tesla Inc. TSLA has announced a price reduction of over 4.5% for its premium models in China, Bloomberg reports. This follows the company’s decision last month to offer cash subsidies to some buyers of its Model 3 vehicles.
Price Reduction Details
All variants of the Model S and Model X cars will see a price drop ranging from 35,000 yuan ($4,825) to 45,000 yuan. The starting price of the Model S will be reduced to 773,900 yuan, and the Model X to 988,900 yuan, according to Tesla’s local website.
Boosting Sales in China
The price cuts and the 8,000 yuan cash subsidy for its more popular models in China underscore Tesla’s commitment to enhancing sales in the world’s largest and most competitive electric vehicle market.
Expected Sales and Market Position
Analysts surveyed by Bloomberg expect Tesla to report sales of around 448,350 cars in the second quarter, a 6% increase from the previous quarter. Despite delivering more than 1.3 million cars worldwide last year and maintaining dominance in the U.S. EV market, Tesla has been outpaced in China by BYD Co., which boasts a newer lineup and growing global ambitions.