Tesla has announced that its new Model 3 vehicle will cost 13% less in China at a price of 328,000 yuan (just under US $47,500). This will be possible because the models that will be sold in the country will be manufactured in the giga factory that is being built in China and will not be imported from the US. Of course, the high-end version of the Model 3 will still be imported.
Since January, the automaker has been building a factory in China, where its initial production will be limited exclusively to the Model 3. A vehicle that can already be purchased in advance through the Chinese website of the company.
Initial prices for the five different versions of the Model 3 made in China range from 328,000 to 522,000 yuan (between US $47,500 and $75,596), and orders will be received with a waiting time of between 6-10 months, as explained by the company in a statement. To make reservations, customers require to make a 20,000-yuan (about US $2,896) deposit and monthly payments of 1,100 yuan per month (about US $159).
Local auto production is likely to help Tesla minimize the impact of China’s import tariffs on the United States, forcing the electric vehicle manufacturer to adjust the prices of its cars in China.
Keeping prices under control will also help Tesla defend itself against a host of new domestic EV companies such as Nio, Weltmeister and XPeng Motors, as well as established automakers such as Volkswagen or General Motors.