Tesla reduces car prices in North America and China

Tesla announced on Wednesday that it is reducing the prices of its vehicles in North America by as much as 6%, according to Reuters. After the coronavirus lockdowns were eased, the automaker has ramped up car production at its Fremont factory.

Amid the lockdowns, demand for cars had decreased, with car manufacturers either closing factories, or manufacturing ventilators to assist hospitals in the treatment of patients diagnosed with the coronavirus. However, it is expected that sales will rebound in May, as several carmakers are offering discounts and incentives, according to J.D. Power, an analytics firm.

According to the firm's website, Tesla Model S sedans start at $74,990, and Model X vehicles are now priced from $79,990. Prices of the aforementioned two cars have been decreased by $5,000. Tesla Model 3, which is the firm's cheapest vehicle, is now priced at $37,990.

Similarly, the automaker will also cut car prices in China, according to an announcement made on Weibo. Prices of the Model S and Model X cars that the firm imports will be reduced by around 4%; however, Model 3 cars, which are manufactured in China, will cost the same.