Tesla Inc (NASDAQ: TSLA) Model 3 is facing stiff competition in China from a budget electric vehicle built under a joint venture with General Motors Company (NYSE: GM) as a partner, BBC reported on Wednesday.
What Happened: The Hong Guang Mini EV built by Wuling — a partnership between China’s state-owned SAIC Motor and GM — is priced in China at $4,500. An air-conditioned model is available for just above $5,000, according to BBC.
In comparison, the Model 3 sells for nearly $39,000 in China.
In January, the Hong Guang Mini EV sales reportedly exceeded those of Model 3 by nearly two-to-one.
While the SAIC-GM-made vehicle sold 25,778 units in China, the Model 3 sold 13,843, according to the China Passenger Car Association.
Why It Matters: The coronavirus pandemic is spurring people to drive their own cars instead of taking public transport, according to Shaun Rein, managing director of the China Market Research Group, as per BBC.
According to Reuters, the two-door Hong Guang Mini was also the best-selling electric vehicle in China in August.
Price Action: Tesla shares closed nearly 6.2% higher at $742.02 on Wednesday and fell 0.51% in the after-hours session.
Image: Wuling Motors
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