Tesla lowers prices in China, but Model S 75D starts at six digits (>$100,000) still.

Tesla once again adjusted prices of Tesla Model S and Tesla Model X in China, as demand weakened after China applied a 40% import duty (compared to the previous 25%).

According to Reuters, prices were lowered by 12-26% to make cars more “affordable,” since in July prices went up by 20%.

"We are absorbing a significant part of the tariff to help make our cars more affordable for customers in China,” Tesla said in a statement sent to Reuters."

Currently, the website shows:

  • Model S 75D from 731,900 RMB (about $105,600)
  • Model X 75D from 794,800 RMB (about $114,700)

If Tesla absorbs higher tariffs, it means that it is willing to sell cars in China at lower margins compared to other markets.

Several years ago, when the Model S was first exported from U.S. - if we remember correctly -  Tesla was encouraging that prices will be about the same in every country and the differences are simply costs of transport, sales and taxes. Now, it seems that at least in China, the base price is lower.

Tesla is in tough situation in China because it needs to keep the business rolling at 40% import tax until it will be able to produce cars locally (Model 3), and maybe also perform some final assembly of Model S/X, like in the case of Europe (final assembly takes place in the Netherlands).

Source: Reuters