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- May 9, 2025 1:35 am
- California
August 18, 2023: On Wednesday, Tesla makes other price slashes in China, which decreases models S and X by $7,400 to $8,500.
The Model X is on sale for 836,900 Chinese yuan, down from 898,900 yuan previously, Tesla said in a post on the Chinese microblogging service Weibo. The Model S is now offered at 754,900, reduced from 808,900 yuan.
The electric car maker, run by billionaire Elon Musk, made another round of price cuts this week for the Model Y and Model 3 in China.
In the U.S., Tesla has rolled out cheaper versions of its Model S and Model X vehicles which are not new issues but are range limited by software.
Tesla continues to focus on gaining market share and boosting car sales at the expense of margins. In its June quarter earnings, the company reported operating margins of 9.6% — its lowest for at least the last five quarters.
The continuing discounts concern investors, who worry margins may erode too much.
Tesla shares were down in morning trading Wednesday after falling nearly 3% on Tuesday.
Tesla’s discounts have caused fears of a price war in the Chinese market, which could impact smaller players. Shares of Chinese electric vehicle upstarts Xpeng, Nio, and Li Auto were lower in morning trading in the U.S.
The lower price comes as the Chinese economy struggles to regain a stable footing after exiting a period of strict Covid-19 restrictions, with consumers still cautious about spending.
According to the China Passenger Car Association, Tesla sold 64,285 China-made electric vehicles in July, down 31% from a month earlier.
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