Tesla to Cut Car Prices in North America, China

Tesla has cut prices of its electric vehicles by as much as 6% in North America following a decline in auto demand in the region during weeks of lockdown that have now started to ease. Tesla also said its Supercharger quick-charging service will no longer be free to new customers of its Model S sedans and Model X sport utility vehicles (SUVs).

Auto retail sales in the United States likely halved in April from a year earlier, showed data from JD Power. However, sales in May are likely to improve due to pent-up demand and incentives offered by most carmakers, the analytics firm said.

Automakers including General Motors, Ford Motor, and Fiat Chrysler, are offering 0 percent financing rates and deferred payment options for new purchases.

Factories in the United States started to reopen earlier this month with suppliers gearing up to support an auto industry employing nearly 1 million people.

Tesla was briefly forced to stop work at its Fremont, California, factory due to stay-at-home orders. It resumed production after resolving a dispute over safety measures with local authorities.

On Wednesday, Tesla website's showed the starting price for its Model S sedan is now $74,990 (roughly Rs. 56.73 lakh), down from $79,990 (roughly Rs. 60.48 lakh)

Its Model X SUVs are now priced at $79,990 (roughly Rs. 60.48 lakh), from $84,990 (roughly Rs. 64.26 lakh), and the lowest-priced Model 3 sedan is $2,000 cheaper at $37,990 (roughly Rs. 28.72 lakh).

Tesla said it will also cut prices in China - as per usual after price adjustments in the United States - by around 4 percent for the Model X and Model S.

Tesla China, which is delivering Model 3 sedans from its Shanghai factory, in a Weibo post said it has also cut prices for the Model S and Model X cars it imports, but will keep prices of locally made Model 3 cars unchanged.

© Thomson Reuters 2020

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