Shortly after the delivery of Chinese-manufactured Model 3, Tesla has cut down the starting price of Model 3 by 16 percent in the country. Although the Tesla Model 3 was available for about $51,000 in China, the vehicle is now available for about $42,900 in the country.
Tesla’s latest price cut comes shortly after Chinese government offering a subsidy to the company. At the moment, Tesla has sold 15 Model 3 to its employees. However, general public will start receiving the vehicles later on January 7. Despite its struggles over the years to meet the demands, the company has successfully launched the Gigafactory 3 production lines and expects to increase production of its vehicles in the factory to up to 3,000 in the coming months.
The latest price cut puts the Model 3 comparable with electric vehicles produced by Chinese manufactures. For example, the Xpeng P7 sedan starts at roughly $34,500. Apart from the reduction in starting price, Tesla will also introduce reduced prices for addons such as color and high-performance wheels.
With the reduction in prices, Tesla expects to establish itself in the Chinese market. If the company manages to meet its goals, it will certainly be a great achievement after the company revealed back in October that it has missed Wall Street targets.