Tesla has cut the starting price of its China-built Model 3 by 16 percent, from 355,800 yuan to 299,050 yuan (around $42,900 in current exchange rates), after local subsidies.
The price cut of the China-built Tesla Model 3 is a combination of the 24,750 yuan ($3,550) of subsidies and the company’s new sales policy in the country, which now includes revised pricing for both accessories and home chargers, Reuters reports.
Related: Tesla Delivers Its First Chinese-Made Model 3s
Tesla has already said that deliveries of the locally-made Model 3 will start for the public on January 7. During a special ceremony, Tesla has delivered the first 15 cars to company employees this week, just one year after construction of the Shanghai Gigafactory started.
Tesla has said that 30 percent of its China supply chain is localized, meaning that the rest of the car parts are currently shipped in for the production of the Model 3, but the car maker aims to source 100 percent of the parts required from suppliers in China by the end of 2020.
2020 is a very important year for Tesla in China, as the company is set to more than double the number of Superchargers and service centers there, as well as ramping up the production of the Model 3 at the new Shanghai plant.
The new facility, Tesla’s first outside the United States, aims to produce 250,000 vehicles per year following the current initial phase. This also includes the Model Y, which is set to be produced there next to the Model 3.
Tesla’s Shanghai Gigafactory, also China’s first wholly foreign-owned car factory, has already achieved a production target of 1,000 vehicles per week, which translates in around 280 cars per day.
