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Tesla has reduced prices of its cars in China by as much as a quarter to absorb the impact of tariffs from the US-China trade war on customers.
The California-based electric carmaker said on Thursday that had cut the prices of its Model S and Model X in China by 12 to 26 per cent.
“We are absorbing a significant part of the tariff to help make our cars more affordable for customers in China”, Tesla said in a statement.
China imposed 25 per cent tariffs on $34bn of US goods, including cars, in July in response to Washington’s move to slap tariffs on $34bn of Chinese imports, one of a series of volleys fired in the ongoing trade war between the two countries.
The carmaker cut prices of the Model X and Model S cars earlier this year in reaction to the tariffs but later raised them.
In July, Tesla founder Elon Musk signed an agreement with officials in Shanghai to open the company’s first factory in China to produce lithium-ion batters as well as Tesla cars.