Tesla Model 3 Sharply Falls in Price

The initial cost of the EV has decreased only in China.

Prices for the Tesla Model 3, which is manufactured at a factory in Shanghai, have fallen sharply in China. Thus, the model has fallen in price only for the local market: Chinese customers can buy the electric vehicle for ¥249,900 ($36,800) instead of ¥271,550 ($39,900).

Tesla Model 3 Sharply Falls in Price photo 2

This is the second price reduction since spring. The starting price of the Model 3 was ¥291,800 ($42,900) until May. Thus, the cost has decreased by 15% in 6 months. This is due to government subsidies provided for manufacturers of EVs and environmentally friendly cars. Tesla was included in the list of companies that can qualify for government subsidies at the end of 2019.

To date, the company's factory in Shanghai has launched the production of the Model 3 and the Model Y. This enterprise was Tesla's first full-fledged production outside the United States. Besides, the Shanghai factory is the first Chinese one that is fully owned by a foreign company.

In addition to the American and Shanghai “Gigafactories”, Tesla has a site in the Netherlands, where a large-node car assembly for the European market is organized. The construction of a factory in Berlin is also currently underway, and a European design center will also appear there.

Tesla Model 3 Sharply Falls in Price photo 3

While Tesla's electric vehicles are designed by the company’s studio in Hawthorne (California), the brand's engineering center is located in Palo Alto, and American production is located in Fremont.

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