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Friday, December 14, 2018

Tesla cuts prices on Model X and Model S in China after country reduces US auto tariffs

Tesla is slashing prices on its Model S sedan and Model X sport utility in China after the country suspended some tariffs on cars imported from the U.S., Reuters reported Friday.

The electric car maker has been hit hard by the 40 percent duty on all vehicles imported to the country. China raised tariffs earlier this year in retaliation for U.S. duties on Chinese imports.

Tesla CEO Elon Musk has been particularly vocal about the tariffs China has long levied against U.S. imports, in comparison with the mostly low tariffs the U.S. has historically charged importers.

Tesla was not immediately available for comment.

China accounted for 17.2 percent of Tesla's total revenues in 2017, but only 6.0% in the third quarter due to the impact of the tariffs, said CFRA analyst Garrett Nelson.

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