Tesla Cuts Price of Chinese-Made Model 3

Taking advantage of new battery options and big government subsidies, Tesla (NASDAQ:TSLA) has slashed its Model 3 prices in China. The company’s Chinese website is now advertising a base price for the popular battery-electric sedan of 249,900 yuan, or roughly $36,800.

While this is big news for the company in its efforts to remain dominant in the Chinese market, U.S. consumers won’t be affected…at least, not yet. 

A Tesla Model 3 with a cityscape in the background.

Image source: Tesla.

Race to the bottom dollar

The new price of the Shanghai-made Model 3 Standard Range Plus represents an 8% discount to the previously listed price of 271,550 yuan, or about $40,000. Tesla factors in Chinese government subsidies for electric vehicles (EVs) when it calculates the base price. 

In the U.S., the base price for the Model 3 Standard Range Plus is $37,990, making the Chinese Model 3 slightly cheaper than the U.S. version. That’s largely due to superior government incentives.

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