Tesla is cutting the price of its vehicles in China to absorb “a significant part of the tariff” imposed by the Chinese government on U.S. electric vehicle exports. That’s likely to be a stopgap measure while it opens a new factory in Shanghai. U.S. exports of electric vehicles to China, which accounted for 42.8% of the total in the 12 months to June 30, fell by 68.2% sequentially in the third quarter with no vehicles shipped in September. The decline in prices can also be seen in the 30.7% drop in average export value per vehicle to China vs. increases for the rest of the world.
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