Hyperdrive
Tesla to Cut Model 3 Price in China to Qualify for Subsidies
- Move will follow a Model 3 price reduction in January
- Electric-car makers have proven to heavily rely on rebates
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Tesla Inc. will cut the price of its standard-range Model 3 in China for the second time this year so it can continue to qualify for government rebates on electric vehicles that are being tightened.
The move will drop the price of the sedan below the 300,000 yuan ($42,400) maximum threshold for electric cars in China to qualify for subsidies, Chief Executive Officer Elon Musk said. Model 3s built at Tesla’s factory near Shanghai had started at 323,800 yuan before tax breaks or rebates. Bloomberg News reported earlier that the company was considering the reduction.