Tesla drops cheapest variants, pushing up prices in China

A man drives his electric car from Tesla Motors as he leaves an all-electric cars parking lot in Oslo on May 3, 2019. (AFP)
Updated 17 July 2019

Tesla drops cheapest variants, pushing up prices in China

  • The automaker said it expected production and deliveries to continue growing in Q3

BEIJING: Tesla Inc. has dropped the standard-range variants of its Model X and Model S from its product lineup and adjusted prices across its range, in a sales push that comes days after the US electric vehicle maker reported record deliveries.
To simplify its offerings, the automaker on Tuesday limited variants of its Model X sport-utility vehicle and Model S sedan to “Long Range” and the more expensive “Performance.” It also trimmed the price of its now entry-level Long Range variants.
The discontinuation of the standard-range variants, however, means a rise in starting prices — to $84,990 for the Model X and $79,990 for the Model S, excluding potential buying incentives. Tesla also lowered the starting price of its mass-market Model 3 to $38,990.
“To make purchasing our vehicles even simpler, we are standardizing our global vehicle lineup and streamlining the number of trim packages offered for Model S, Model X and Model 3,” Tesla said. “We are also adjusting our pricing to continue to improve affordability for customers.”

HIGHLIGHTS

• Drops standard-range variants of Model X and S.

• Move means entry X, S cars are pricier long-range variants.

• Tesla delivered record number of EVs in the second quarter.

• Tesla is building a plant in China initially for Model 3 cars.

Earlier this month, Tesla said global deliveries of its three models in the second quarter of this year rose 51 percent from the previous quarter to a record 95,200 vehicles. The Model 3 accounted for about 80 percent of the total, underscoring the vehicle’s role as the linchpin of Tesla’s growth strategy. The automaker said it expected production and deliveries to continue growing in Q3.
In China, the world’s largest market for electric vehicles, Tesla’s changes on Tuesday pushed the starting price of its Model X to 790,900 yuan ($115,068) and Model S to 776,900 yuan.


US removes some Chinese furniture, modems from planned 10% tariffs

Updated 17 August 2019

US removes some Chinese furniture, modems from planned 10% tariffs

  • US President Donald Trump on Tuesday delayed more than half of the proposed tariffs until December
  • The $114 billion retail furniture industry has been among the sector’s hardest hit with price increases due to Trump’s tariffs

WASHINGTON: The Trump administration is sparing some Chinese-made household furniture, baby items and Internet modems and routers from its next rounds of 10 percent tariffs, it said on Friday.
The US Trade Representative’s office released a complete list of the items that were removed from $300 billion in tariffs scheduled to go into effect on Sept. 1 and Dec. 15, some of which had already been hit with 25 percent tariffs.
Trump on Tuesday delayed more than half of the proposed tariffs until December, saying it would help shield businesses and consumers from the US-China trade war fallout during the Christmas selling season.
The new list of 44 categories of spared imports, worth about $7.8 billion according to US Census Bureau data, also includes some chemical compounds used in the manufacture of plastics. Reuters previously reported that bibles and religious texts would be spared from the tariff list.
Modems and routers made in China were part of a $200 billion list of products hit with tariffs last September that have since been raised to 25 percent. Friday’s exclusion would avoid a further 10 percent hike as Trump imposes tariffs on Sept. 1 to products in the same broad customs category, including smart watches, smart speakers and Bluetooth headphones.
The bulk of the items removed from the tariff list were furniture products, including wooden- and metal-framed chairs and those made of plastics. Some of these were previously hit with tariffs as part of broader furniture categories.
Baby-related furniture items also were spared, including toddler beds, bassinets, cradles, strollers and children’s seats.
The $114 billion retail furniture industry has been among the sector’s hardest hit with price increases due to Trump’s tariffs, which rose to 25 percent in May.
The US Labor Department said on Tuesday that the price index for household furnishings rose 0.4 percent in July, marking its third consecutive monthly increase and contributing to broad-based growth in consumer prices during July.