Tesla Inc is reducing the price of its Model X and Model S cars sold in China, Reuters reports, as the electric car maker braces for a hit from the ongoing US-China trade war.
The company, headed by tech mogul Elon Musk, announced that the two cars will be 12-26% cheaper in order to stay competitive in the world’s largest auto market.
“We are absorbing a significant part of the tariff to help make our cars more affordable for customers in China,” Tesla told Reuters.
The move is a reversal from Tesla’s decision in July to hike its two models’ prices by about 20% following the first wave of tariffs from Washington. Prior to this, the firm pledged to slash prices on Beijing’s announcement to cut import tariffs in the auto market.
Tesla voiced doubts for its prospects in the market last month, saying that sluggish sales will force it to speed up investment in its newly-opened Gigafactory in Shanghai.