Tesla cuts China car prices to engross hit from trade war tariffs

A man finishes charging his Tesla car outside Tesla China headquarters. [Photo: Reuters]

BEIJING/SHANGHAI- Tesla Inc is cutting the price of its Model X and Model S cars in China, the US firm said on Thursday, in a shift in strategy that will see it take more of a hit from tariffs linked to a biting trade war between China and the United States.

The electric carmaker, led by billionaire CEO Elon Musk, said it will cut prices of the two models by 12-26 percent to make the cars more “affordable” in the world’s top auto market, where sales of so-called new-energy vehicles are rising fast.