Taking advantage of new battery options and big government subsidies, Tesla (NASDAQ:TSLA) has slashed its Model 3 prices in China. The company’s Chinese website is now advertising a base price for the popular battery-electric sedan of 249,900 yuan, or roughly $36,800.
While this is big news for the company in its efforts to remain dominant in the Chinese market, U.S. consumers won’t be affected…at least, not yet.
Race to the bottom dollar
The new price of the Shanghai-made Model 3 Standard Range Plus represents an 8% discount to the previously listed price of 271,550 yuan, or about $40,000. Tesla factors in Chinese government subsidies for electric vehicles (EVs) when it calculates the base price.
In the U.S., the base price for the Model 3 Standard Range Plus is $37,990, making the Chinese Model 3 slightly cheaper than the U.S. version. That’s largely due to superior government incentives.