Monday is a tough day for the U.S. market market, but Tesla's shares are especially difficult. The stock has dropped 7.6 percent after Tesla cut the price of Model 3 to China and CEO that Elon Musk promised to pay US customers if they lose a tax credit deadline due to delay in Model 3 .
This Reuters reported the price of Model 3 on Tesla's China website decreased by up to 7.6 percent, with today's starting price at 499,000 RMB (about $ 72,000). This is the third time since November that Tesla has reduced the price of its vehicles to China.
The first was in November, when it broke the price of Model X and Model S vehicles at 12 to 26 percent, saying that it "absorbs a significant portion of the tariff to help make it more affordable the cars for customers in China. " After this month, Tesla again cut Model X and Model S prices, citing China's decision to temporarily suspend a new 25-percent tariff on Americans -Produced vehicles and auto parts while the two countries reached a ceasefire in the trade war.
In October, Tesla announced on its site that if US customers need to order Model S, Model X, or Model 3 before October 15 if they want the entire $ 7,500 federal tax credit , which starts with a sale when selling a 200,000 qualified US car (Tesla recorded this milestone earlier this year). As a result, the cut federal tax is 50 percent to $ 3,750 for vehicles delivered from January 1 to June 30, 2019, before halved again on July 1.
On Sunday, Musk tweeted in response to a question as if the pre-December customer order was not sent before the end of the year, Tesla will return tax credits they did not get.
If Tesla is committed to delivery and customers make good faith efforts to receive before the end of the year, Tesla will cover the difference in tax credit
– Elon Musk (@elonmusk ) December 22, 2018
After months of delay in production and delivery, Tesla defeated the orders of Model 3 in the third quarter of this year, when it carried a total of 83,500 vehicles, including 55,840 Model 3 units.