Tesla’s China Price Cuts Brings Shares Down, Will Pay Tax Credits To US Customers

Tesla’s China Price Cuts Brings Shares Down, Will Pay Tax Credits To US Customers

Tesla has fallen down to 7.6% on December 24, 2018 when the company had cut down prices in China. It said it would be paying customers in United States who due to the fault of production delays of the company missed deadline. Elon Musk, the CEO of Tesla has already tweeted highlighting the issue in concern. He has clearly stated that the customers would not have to provide any fines for the production delay issues of the company. The Congress of US which is dominated by Republican Party has mentioned that the tax credit would be lessened by about 50% every half of the year till it can be entirely removed.

Those who had ordered their cars from Tesla had already begun to tweet or post their grievances on various social media platforms regarding the least communication efforts taken by the company. They were worried regarding the delivery of their cars prior to the $7,500 tax credit that is to be reduced by 50% from the very first day of next year. Musk has made another tweet asking the customers to keep a good faith in the company and that Tesla will bear the difference in tax credit.

According to the Chinese website of Tesla, the company has reduced some of the Model 3 cars almost by 7.6% in China. In fact, in the past two months, prices have been adjusted and re-adjusted twice. The company has claimed that this has been done to make the new price beneficial and affordable for the customers. Models of X and S series have been cut down by approximately 12% to about 26%. Again, the prices have been sloshed down when the finance ministry in China have reduced the cost of import of the cars. This was possible due to the suspension of the surplus tariffs for first three months of the upcoming year.

Lawrence McAlpine

Lawrence is among the budding member of our team presenting his skills at simplifying the business-related concepts and terms in a simple manner. By gaining insights into several businesses from across the world, Lawrence puts forth the best of his knowledge and latest trends about a business in his articles in a skillful way. Apart from this, Lawrence also has a keen interest in politics and maintains a separate blog to put forth his viewpoints and opinions on several political affairs.

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