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Rich Pedroncelli / Associated Press
- Tesla announced that it was slashing the prices of X and Model S models in China to partially offset the impact of President Donald Trump's tariffs.
- Shares fell 1.8% after the announcement.
- Watch Tesla's trade live.
Tesla slid Friday, down 1.8% to less than $ 332 a share, after the company announced that it was reducing the prices of some vehicles in China to help offset some of the effects of the trade war of President Donald Trump.
The electric car maker said on Thursday that it was reducing its X and S model vehicle prices from 12 percent to 26 percent to make them more "affordable," Reuters reported.
"We are absorbing a significant portion of the fare to make our cars more affordable for customers in China, "Tesla said in a statement sent to Reuters.
This announcement comes a little over four months after Tesla's announcement of a 20% price increase in China, in response to Beijing's announcement of retaliation against Trump by imposing rights of customs on Chinese goods worth $ 34 billion.
Tesla's stockholders experienced ups and downs in the second half of 2018. The stock exceeded $ 387 on August 7, the day Chief Executive Officer Elon Musk said he had secured "secured financing" for take Tesla privately at 420 dollars. Musk did not have guaranteed funds and then settled with the Securities and Exchange Commission, which accused him of misleading the public. As part of the settlement, he agreed to resign as president for at least three years and pay a $ 20 million fine.
Tesla shares fell to $ 250 as a result of the "secured financing" saga, but were able to retain key support in the region. The shares rallied above $ 350 after the company canceled its third-quarter forecast and named Robyn Denholm, CFO of Australia's Telestra, the chairman of the board of directors.
Tesla was up 8.6% this year until Tuesday.
Insider Markets
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