Tesla offers cash rebate on top models in China

Tesla on Friday said it would offer new buyers of its top-selling electric vehicles in China a cash bonus equivalent to almost $500 if they have a referral from an existing owner, deepening a price war in the world’s largest market for EVs.

Tesla said it would offer new buyers of its Model Y and Model 3 vehicles a cash rebate of 3,500 yuan ($483) if they could cite a referral from an existing owner.

Tesla also said new buyers would have free access to its Enhanced Autopilot driver-assistance system for 90 days.

Since the start of the year, when it touched off a price war in China’s EV market, Tesla has cut the base price of the Model 3 sedan in China by 14% and by 10% for the Model Y, its global best seller.

Tesla announced the rebate a day after joining 15 other companies, including Chinese EV makers Nio, Li Auto and Xpeng, in a pledge organized by the China Association of Automobile Manufacturers to avoid “abnormal pricing”, interpreted by some to signal a truce in a price war that had threatened industry-wide profitability.

Volkswagen’s China CEO Ralf Brandstatter said in a speech last month at an event attended by Chinese Premier Li Qiang that China’s market for electric vehicles was marked by “high price discounts” and “an unhealthy competitive environment”.

This report’s information was first seen on REUTERS; to read more, click this link.