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(Yicai Global) March 4 -- Tesla's decision to significantly reduce retail prices in China has incited the country's consumers that have already purchased cars from the US new energy vehicle giant.
There are calls for the Palo Alto-based firm to compensate previous buyers and they have not ruled out pursuing legal channels to protect their interests.
Tesla slashed its prices by an average of 14.6 percent with the sports utility vehicle Model X seeing the biggest cut of 28 percent from CNY950,000 (USD142,000) to CNY777,000. The company has halved the price autopilot or full self-driving for those who had already bought its cars.
Buyers in the first-tier cities of Shanghai, Beijing and Shanghai believe the move harms their interest and is unacceptable, Yicai Global learned. "A Tesla salesman told us that they are waiting for a response from the company," one owner said.
Legal Success Unlikely
Those customers who have already ordered a car but are yet to receive it will also enjoy the new prices while those who took delivery within the last three days can get a full refund subject to Tesla's terms and conditions, Yicai Global learned from the firm.
Car owners are unlikely to get compensation by pursuing legal channels, multiple lawyers told Yicai Global. A company is generally free to price goods as they wish and it is difficult for customers to stand up for their rights and interests citing price cuts, unless the company has previously promised not to do so, according to Fang Zhengyu, a partner at a Shanghai law firm.
It is still possible for earlier buyers to get some compensation by talking to Tesla directly, he added. "It is just like when property developer pay buyers a little if they go to the sales office and ask the developer to compensate them post-price cut despite the lack of a legal basis for it."
The amount of compensation could be too small to satisfy the early buyers, however.
"The price cut comes right after I bought the vehicle, and I paid CNY200,000 more, it's not just CNY1,000 or CNY2,000," one Tesla owner told Yicai Global, adding that he will talk to the company first before deciding whether to sue.
Other consumers welcomed the price cut. "Tesla is still far ahead of other electric vehicle makers in terms of technology, and I will now consider buying one," one potential customer told Yicai Global.
Editor: William Clegg