Tesla Inc.’s vehicle sales sunk 70% last month, as the country’s passenger car association mentioned in a report on Tuesday, indicating how the US-China trade war is hurting global business growth. A China Passenger Car Association spokesman told that the Tesla had just sold 211 cars in China in October, as the Industry Body data showed.
Tesla did not make any comment regarding this particular issue, after submitting a written request for comments on Tuesday. The electric carmaker actually imports all of the cars it sells in the China and in October the tariff hike over auto industry simple slashes the Tesla sales.
In the face of trade war, Beijing raised the tariffs of all US autos to 40%. While this so-called new energy vehicle sales are continuing to climb in China, this withering trade war had just burned up the momentum. As a response to Trump’s tariff over Chinese Goods, Beijing also impose tariffs over all of the US autos and as aftermath, Tesla’s sale is being pervasively plunged.
Recently in an interview, the Tesla CEO, Elon Musk said that they would be cutting the price of Model X and Model S cars in China, as a shift in the strategy for making their cars more affordable. More importantly, he also mentioned that this price cut is an alternate approach of the company to absorb the hit resulted from higher tariffs.