Tesla reduces Model 3 price in China: Report

Beijing: Electric vehicle maker Tesla has reduced the price of the Model 3 Standard Range in China, even as the price of the same vehicle produced in the US has been going up.

Since the beginning of the year, Tesla has been increasing the price of its electric vehicles in the US. In China, where Tesla now sells vehicles produced locally, the prices have been stable.

But now, the automaker announced a price change in China and it’s trending differently than in the US, reports Electrek.

Tesla China announced that the price of the Model 3 Standard Range is going down by 15,000 yuan or the equivalent of $2,323.

The cheapest Tesla vehicle in China now sells for 235,900 yuan ($36,500) — that’s less than the $39,990 starting price of the base Model 3 in the US, the report said.

In China, where Tesla still has a press relations team, the automaker communicated to the media that the price decrease was due to “cost fluctuations.”

It would imply that Tesla’s costs in China have improved despite CEO Elon Musk’s warning that Gigafactory Shanghai is facing some supply chain issues during Tesla’s earnings call earlier this year, the report said.

According to the report, the EV maker still hasn’t brought back the popular version of its electric sedan to the market.

The Chinese market has become increasingly important for Tesla, especially since launching the Model Y produced at Gigafactory Shanghai.