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Tesla Slashes Model 3 Standard Range Price In China

Tesla Inc (NASDAQ: TSLA) has slashed the price of the Model 3 Standard Range variant in China, shows the electric vehicle maker’s website.

What Happened: The electric fastback midsize four-door sedan is now priced RMB 15,000 ($2,323) lower at RMB 235,900 yuan ($36,517) and delivery is expected in four to six weeks.

The price adjustment reflects the reality of cost fluctuations, according to a cnEVpost, which first reported the development. 

Tesla has been making the mid-size sedan Model 3 in Shanghai since late 2019. 

Earlier this month, Tesla started taking bookings for its locally built electric mid-size SUV Model Y’s standard variant in China for under RMB 300,000 ($46,000), thus qualifying it for state-led subsidies.

Tesla started selling the locally made Model Y in China earlier this year in January after it had started manufacturing the SUV at its Shanghai Gigafactory.

Why It Matters: Tesla’s latest price cut makes the Model 3 even more affordable after the company narrowed the price gap with the introduction of a more affordable Model Y standard variant that qualified for a subsidy. 

The Palo Alto-based company sold 33,463 China-made electric cars in May, and its sales in China jumped by 29% from the previous month.

Unlike China, Tesla has been hiking the prices of some of its Model 3 and Model Y vehicles in the United States. Earlier this week the Elon Musk-led company introduced a steep $1,000 price increase for the Long Range editions of both Model 3 and Model Y.

Price Action: Tesla shares closed 4.69% higher at $677.35 on Thursday. 

Click here to check out Benzinga’s EV Hub for the latest electric vehicles news. 

Photo: Courtesy of Tesla

© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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