Tesla Cuts Prices In North America And China By Up To 6% To Ease Sales Slump
by Isabel TogohTOPLINE
Tesla has dropped the price of its cars in North America and China by up to 6% in a bid to boost sales, following a drop in demand for new cars in the midst of coronavirus lockdowns.
KEY FACTS
Tesla’s flagship Model S sedan has had thousands knocked off, now starting from $74,990, down from $79,990.
Some $2,000 has been taken off its cheapest Model 3 Sedan, with a new starting price of $37,990, while its Model X SUV starts at $79,990, around $5,000 cheaper than before.
Car sales were about 50% down last month compared with April 2019, according to automotive industry analysts J.D. Power.
The pandemic and California's lockdown measures meant that Tesla's Fremont factory was shut down for nearly two months but reopened following a spat between Tesla CEO Elon Musk and county officials.
The electric carmaker is also adjusting prices in China to around 4% lower for its imported Model S and Model X vehicles, the company announced on its Weibo page on Wednesday.
Key background
U.S. car makers are looking for ways to kickstart sales after reopening factories earlier this month. Fiat and General Motors GM have offered 0% finance while Ford's "Built to lend a hand" plans offers to defer payments for up to 3 months in a bid to lure drivers back through the door of dealerships.
The reopening of America's largest manufacturing industry, which employs more than 600,000 people, should provide a boost to the economy but resuming production has not been a smooth ride. Manufacturers have faced challenges with supply chains, adapting factory floors for social distancing, and working with local health officials.
That includes at Tesla TSLA ’s Fremont plant, following a spat between billionaire CEO Elon Musk and Alameda County over reopening during lockdown. Last week, the factory was allowed to resume production on the condition that it follows local and state safety guidelines. But that was after Musk defied county orders by restarting production amid shelter-in-place orders, and threatened to move the factory, which employs 10,000 people, out of California. Musk has openly condemned coronavirus lockdowns, at one point calling the public health measures “fascist.”
Further reading
Elon Musk Tells Tesla Workers Production Is Restarting At Idled California Plant (Forbes)
Elon Musk Wins Battle With Alameda County: Tesla Factory Allowed To Reopen (Forbes)
Elon Musk Rants About `Fascist’ COVID-19 Closures As Another Tesla Call Veers Off Course (Forbes)