Tesla Slashes China EV Prices to 40% Less Than in U.S.

(Bloomberg) — Tesla Inc. shares extended their slump after the carmaker made another round of price cuts in China’s increasingly competitive electric vehicle market.

The starting price for Tesla’s locally built Model Y sport utility vehicle dropped 10% to a new low of 259,900 yuan ($37,875), according to the company’s China website. That standard-range, rear-wheel-drive version costs 43% less than the base Model Y available in the U.S., which has a longer range and is all-wheel-drive. Tesla also lowered the price of the Model 3 by 14% to 229,900 yuan, about 30% cheaper than in the U.S.