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US electric vehicle maker Tesla Inc will cut prices for its Model Y long-range and performance versions in China, starting on Aug. 14, the company said in a notice on Monday.
The starting price for Model Y long-rang will be cut to 299,900 yuan from 313,900 yuan, while the price fro Model Y performance version will be cut to 349,900 yuan from 363,900 yuan, it said.
In addition, Tesla also said it would offer insurance subsidies in China of 8,000 yuan between Aug. 14 and Sept. 30 for buyers of the entry-level, rear-wheel-drive versions of the Model 3 vehicles in inventory.
Tesla’s price cuts follow similar actions last month, which came despite a pledge made along with several other companies in China to avoid “abnormal pricing”, which some thought signalled a truce in the price wars that have threatened the profitability of the industry.
Tesla’s move came after at least ten Chinese carmakers have announced a new round of price cuts and other types of incentives in a bid to boost car sales and meet their second-half sales targets. Read more …