Tesla has once again slashed prices in China, signaling its determination to dominate the world’s largest car market. The electric-vehicle giant reduced the price of its luxury sedan, the Model S, to 754,900 yuan ($103,463) from 808,900 yuan. Additionally, the price of its SUV, the Model X, was decreased to 836,900 yuan ($114,702) from 898,900 yuan.

This latest move follows Tesla’s implementation of insurance subsidies and price reductions for its lower-end Model 3 and Model Y vehicles over the weekend. Clearly, Tesla is not only focusing on the Chinese market; the company recently introduced more affordable versions of the Model S and Model X for order on its U.S. website. These versions come at a $10,000 discount compared to the standard models, but with a limited range.

As a result of these price cuts, Tesla shares experienced a minor decline of 1.6% during premarket trading on Wednesday. The trend extended to U.S.-listed shares of Chinese EV makers, with NIO falling by 3.7%, XPeng declining by 2.6%, and Li Auto seeing a decrease of 1.9%.

It’s evident that Tesla is aggressively employing its pricing strategy to stay ahead in the competitive world of electric vehicles. By putting pressure on its rivals through these price reductions, Tesla is solidifying its position as a market leader.

By Adam Clark

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