Tesla Inc. the American Automotive and energy giant based in California who specializes in electric car manufacturing and renewable energy is getting closer and closer to revealing their new line of prices for their long awaited model 3 in China. This comes after they have recently announced the news that it has almost finalized their contracts for local production of the vehicle.
The well-known automotive producer has plans to make an announcement regarding their locally made Model 3 cars on the 31st of May. Tesla recently said in a posting to their social media channels that they are inviting people to guess the price of their Model 3 in China before the official announcement at the end of the month.
It has been said that the company has considered pricing their new line of Model 3’s between 300,000 yuan (around $43,000 USD) and 350,000 yuan before subsidies, this according to people close to the matter, and who wished to remain anonymous discussing the sensitive matter. The final pricing on the vehicles is still being finalized and a spokesperson for Tesla declined to comment on the specific details regarding the launch before the official announcement on the 31st.
Now Tesla already sells their Model 3 cars in China, however due to not being locally manufactured, and the fact that Tesla has to import each of them from the United States the vehicles are currently disqualified from Chinese Government subsidies, which makes the cars a lot more expensive due to the fact the company has to pay import tariffs. Currently Tesla Model 3’s in China are priced at 377,000 yuan, which includes all import duties and VAT, according to the Tesla website. Tesla is counting on the abilities of its Shanghai factory, which is due to start the production of the vehicles at some point this year. What is expected is that when the vehicles are locally produced, it will bolster the company’s competitiveness in a country where the electric vehicle market is flooded with alternative manufacturers. If Tesla are successful in beginning production in China, which is known as the world’s largest car market, this move would allow Tesla to avoid import tariffs, and increase the time it takes for delivery of their vehicles. Not only is local production a benefit for the company, people who are looking to purchase the new Model 3 would also see the benefit of a lower cost to purchase.
Brian Harrison – AMT Associates