Tesla in China priced 23 percent less than in Europe

Tesla has reduced the price of its Model 3 sedan from its new Chinese factory by almost a tenth. A cheaper Tesla should appeal to Chinese consumers better, is the thought of the American automaker. Together with the subsidy from the Chinese government, the Model 3 sedan is now coming closer to the price of Chinese-made electric cars such as the P7 sedan from Xpeng Motors and the electric SUV from NIO.

Now there is a price tag of 323,800 yuan on the car in China. That is just under 42,000 euros and the government subsidy from Beijing has to get substracted of that. Chinese consumers ultimately pay more than 38,000 euros. For comparison: in Europe the starting price is almost 49,000 euros.

China is the largest market for electric cars in the world. The Chinese factory of Tesla recently opened its doors. Last week the employees received the first Model 3 sedans that rolled off the band. The actual production for the Chinese market is expected to start on January 7.