Tesla car made in China to be priced 20 percent cheaper

Tesla is considering lowering the prices for cars made in China. Sources tell the Bloomberg news agency that the Tesla Model 3, which rolls off the line in the Asian country, can become more than a fifth cheaper. With this, the maker of electric cars wants to attract potential buyers in the largest car market in the world.

In China, electric car sales are already falling for months after Beijing decided to reduce vehicle subsidies. Lower prices must therefore counteract this effect.

Tesla hopes to be able to reduce production costs by making more use of locally produced parts. As a result, less import would be required and logically, import rates would be avoided. The automaker also hopes that the presence of the gigafabric in the Chinese city gives the automaker a head start over competing brands such as BMW and Daimler.

The cars made in Shanghai currently have a price tag of at least 355,800 yuan (45,640 euros). The prices may be lowered in the second half of next year.