(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