Tesla’s Chinese Sales Plummeted By 70 Per Cent In October

Sales of Tesla vehicles in China plummeted in October, falling by 70 percent compared to the same period in 2017, CNBC reports.

According to an official from the China Passenger Car Association, the electric carmaker sold just 211 vehicles in the country in October, a measly figure for a market that’s as EV-hungry as China. However, the sales result isn’t entirely surprising.

Tesla vehicles have never been particularly cheap in China and became all the more expensive as a result of the trade war between the United States and China. In fact, prices of Tesla’s various models in China soared by over $20,000 back in July after the Asian superpower increased its tariff on electric cars from 15 to 40 per cent.

These new tariffs saw the Model X priced at the equivalent of $140,100 compared to the $117,100 it previously sold for. Additionally, pricing for the Model S increased to $128,400, roughly $21,000 more than it demanded prior to the tariffs.

In a bid to re-ignite interest in its vehicles in China, Tesla recently announced that it will lower prices on the Model S and Model X by 12-26 per cent to make them more affordable.

In October, Tesla admitted that new tariffs were adversely affecting its sales in China. But it’s not just Tesla that is suffering. Since the middle of the year, auto sales across the industry have been on the decline, pushing the country towards its first annual sales contraction in almost 30 years.

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