In China, where higher prices mean prestige, luxury U.S. electric carmaker Tesla is taking a bold step to win over clients and cachet by curbing the markup to just half of what some of its rivals can command.
Though it risks relegating its brand to a lower tier, Tesla's marketing strategy could prove a model for other imported brands, which have come under fire from China state media and regulators for allegedly ripping off shoppers with inflated prices.
(Read more: Tesla unveils price of Model S in China)
In an unusual blog post last month, the firm detailed the lower-than-expected 734,000 yuan ($121,400) China price tag for its high-end Model S electric car. The price, still 50 percent higher than in the United States, includes only "unavoidable" taxes and transport costs, it said.
"If we were to follow standard industry practice, we could get away with charging twice as much for the Model S in China as we do in the United States. But we're doing things differently," Tesla said in the blog on January 22, posted to consumers through popular Chinese social media channels.