Tesla Inc (NASDAQ: TSLA) has cut prices of its domestically-made Model 3 vehicles in China.
What Happened: The Elon Musk-led electric vehicle maker’s Chinese website shows that the starting price of its Shanghai-made standard range Model 3 sedan has been reduced 8% to RMB 249,900 ($36,800) on a post-subsidy basis. The earlier price for Model 3 was RMB 271,550 ($39,990) after subsidies.
The price for local longer-range Model 3 electric car has also been slashed 11% from RMB 344,050 ($50,667) to RMB 309,900 ($45,638).
The standard range Model 3 sedans would now come with cheaper lithium iron phosphate (LFP) batteries rather than the nickel-cobalt-manganese (NMC) ones, people familiar with the matter told Reuters, which first reported the news.
Why It Matters: This is the third time the Palo Alto-based company has cut the price of its Model 3 range this year in China. Prices