In a desperate attempt to stay competitive in the Chinese market, Elon Musk’s Tesla has announced a price cut of 14,000 yuan ($1,900) for its two higher-end Model Y vehicles. The price reduction is seen as the latest move in an ongoing price war that has been affecting the electric vehicle (EV) industry in China. Tesla previously promised to uphold the “core socialist values” of communist China in an attempt to cool down the price war with local competitors.
Bloomberg reports that Elon Musk’s Tesla has recently slashed the prices of its two top-tier Model Y electric vehicles by 14,000 yuan ($1,900) in order to stay competitive in the Chinese market. This decision is viewed as a response to the ongoing price war that has impacted the EV industry in China.
The price cut affects the Model Y Long-Range and Performance models, which will now be priced at 299,900 yuan and 349,900 yuan respectively. The announcement was made on Weibo, a popular Chinese social media platform.
The Model Y has been a key player in Tesla’s lineup, along with the Model 3, both of which have been best-sellers for the company. The price reduction is seen as a strategic move to maintain Tesla’s competitive edge in the Chinese market, where the company has faced stiff competition from local EV manufacturers.
The price war in China’s EV market was triggered by Tesla last year, forcing other manufacturers to follow suit and lower their prices as well. This aggressive pricing strategy has had a significant impact on the industry, with many companies struggling to maintain profitability.
Tesla’s decision to cut prices comes at a time when the company’s China deliveries have cratered by 31 percent, reaching the lowest level this year. Industry experts believe Musk hopes to boost sales and regain market share in the highly competitive Chinese market.
Breitbart News reported in July that Elon Musk’s Tesla and its Chinese rivals vowed to uphold “core socialist values” and compete fairly in China’s expanding auto market. The pledge was in response to a directive from Beijing that aims to end the protracted price war that has been upsetting the sector. The latest price cut is likely to have the exact opposite affect.
Read more at Bloomberg here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship. Follow him on Twitter @LucasNolan