Tesla lowers prices again after China announces suspension of U.S. auto tariffs

Shanghai (Gasgoo)- Tesla has decided to slash prices on its Model S sedan, Model X SUV and Model 3 sedan in China after China said on December 14 it will suspend some tariffs on vehicles and auto parts imported from the U.S..

Gasgoo compiled the detailed price change of each model as below. The price of the Model S 100D has been even reduced by up to RMB105,000.

China's Ministry of Finance said in a statement that it will temporarily remove the additional 25% tariffs on $66 billion worth of vehicles and auto parts and additional 5% tariffs on $60 billion worth of cars and auto components imported from the U.S. for three months starting January 1, 2019.

Tesla has announced earlier this year that the prices of the Tesla Model S and the Model X will be cut by 12% to 26% in China from November 22 on. Especially, the price of the Model X P100D will be cut by 24.4% to RMB 1.19 million.

An official from China Passenger Car Association (CPCA) said relevant data showed Tesla sold just 211 vehicles in the world's largest auto market in October, plunging 70% compared with the same period a year ago. But shortly after the report came out, Tesla released a statement saying the numbers cited in the article were "wildly inaccurate"."While we do not disclose regional or monthly sales numbers, these figures are off by a significant margin," the company said.

Tesla noted in the third quarter shareholder letter that the goal to deliver 100,000 units of the Model S and Model X worldwide in 2018 remained unchanged, which means that there are still 28,240 vehicles needed to be sold in the fourth quarter. Thus, the latest two price-cut announcements are expected to help Tesla fulfill its sale target as part of year-end spurt efforts.