Tesla victim in China of customs duties

Tesla, the Californian manufacturer of electric cars, announces a 70% drop in sales in China.

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in China plunged 70% year-on-year in October, with the California electric car manufacturer facing the full-blown trade war between Washington and Beijing, the Chinese auto federation said. An official of the China Pbadenger Car Association (CPCA) said that the data of the latter indicated 211 sales of Tesla last month in China, the world's largest car market.

The group, which sells imported cars in China, said in early October that its sales in this country were suffering from a 40% increase, decided in July by Beijing, tariffs on car imports from the United States. To counter this decline in sales, Tesla management announced its intention to accelerate its investment in its new car factory in Shanghai, its first outside the United States.

Even though sales of cars powered by non-thermal energy continue to flourish in China, the automobile market as a whole contract since the middle of the year, which suggests in 2018 a first annual decline in nearly 30 years.

Last week, Tesla announced a lower prices from 12 to 26% Model X and Model S in China to offset rising tariffs. "We take on a significant share of the customs duties to make our cars more affordable for Chinese customers"explained Elon Musk, the founder of the brand.

Last month, the builder announced the signature of a land agreement with the Chinese authorities for the construction in Shanghai, on a plot of about 860,000 square meters, of its first factory abroad.