Tesla Model 3 Made In China Could Have $50,700 Price Tag

Latest in Tesla news is that the American electric car maker will reveal the price of China-made Model 3 sedan in a few days. However, media reports said the price of Model 3 can be in the range of $43,431 to $50,670.

This price in Chinese currency yuan will be 300,000 to 350,000 before subsidies.

The California-based carmaker updated in a social media post that it will make a formal announcement about the China-made Model 3 cars’ pricing on May 31.

The carmaker also invited fans to guess the price of the domestic Model 3 before the official announcement is made. Reporting this, Bloomberg said the final price is still under works. But Tesla did not react to reports on pricing.

Local production to qualify Model 3 for Chinese subsidy

Tesla’s Shanghai factory, now under construction, is expected to begin formal production in a few months. Tesla has put high stakes on the Shanghai factory (Gigafactory 3) as a game changer that would enhance its competitiveness in China where hundreds of electric-vehicle makers are in fierce competition.

Local production in China would bring Tesla many benefits including relief on import tariffs.

Tesla has been shipping Model 3 vehicles from the United States. But the U.S made vehicles are ineligible for the Chinese government’s subsidies. That leads to higher pricing of Model 3 at 377,000 yuan or $54, 546 in China.

Domestic production will offer a price cushion of at least $9000 to the end customer in addition to subsidies. Local production would also speed up Tesla’s deliveries.

Shanghai factory to begin production in a few months

Chinese social media has been abuzz with Tesla’s initial target output at the Gigafactory 3. Sources have put initial China production at 3,000 units of Model 3 in a week. That will be ramped to 500,000 cars per year.

According to a leaked email of CEO Elon Musk, the target of Model 3 production in the United States will be stretched to 7,000 units per week.

Combined with Tesla’s production in China, the Model 3 electric sedan’s total global production would be around 10,000 units a week.

Reports also said the China factory would be producing vehicles for other regions of Asia including India.

By focusing on SR models, Tesla aims to saturate China and feed other price-sensitive markets.

If no unforeseen delay crops up, the China factory may start production of Model 3 by September.