Home / Business / Tesla shares almost 8% after reimbursement plan, price cuts in China

Tesla shares almost 8% after reimbursement plan, price cuts in China

Tesla Inc.'s stock slider nearly 8% on Christmas Eve after Chief Executive Elon Musk revealed a potentially costly plan to reimburse customers who miss a deadline for U.S. tax credits on electric cars

Earlier this year, Tesla

                                     TSLA, -7.62%

said orders for cars placed by Oct. 15 would be delivered by Dec. 31, the federal government's expiration date for a $ 7,500 electric vehicle tax credit. On Jan. 1, credit for half, to $ 3,750.

But Tesla has been plagued by numerous production delays, most notably for its popular Model 3 sedan, prompting complaints from customers who have been forced to wait. on Saturday to a Twitter user who asked what would happen if cars didn't arrive in time, Musk replied: “If Tesla committed delivery & customer made good faith efforts to receive before year end, Tesla will cover the tax credit difference.” [19659002] Separately, Tesla over the weekend also cut prices for its Model 3 in China, according to its website. The starting price for the sedan is now 7.6% lower, at $ 72,000.

It's the third time since November that Tesla has tweaked its Chinese pricing. Last month, the Musk-led company cut prices for the Model X and Model S by between 12% and 16%.

At the time, Tesla claimed that the move was designed to absorb "a significant part of the tariff to help make cars more affordable for customers in China. ”Earlier this month, Tesla prices on its Model S and Model X after China's finance ministry said it would suspend additional tariffs on US-made vehicles and auto parts for three months beginning in US-produced Tesla cars in China for sale

Tesla shares finished down 7.6% on Monday, at $ 295.39.

This report originally appeared on NYPost.com.

Source link