Tesla Announces Price Cut for Model 3 as Public Delivery Starts

Made in China Tesla Model 3 (Source: Tesla)

Following a symbolic exclusive delivery to select employees of Telsa’s first batch of Model 3 cars produced in its Shanghai gigafactory, the public delivery of domestically made Model 3 cars will officially begin next week.

Tesla has confirmed to China Business News that the domestically produced Model 3 will be delivered in Shanghai on January 7. CEO Elon Musk may attend but his schedule is still being arranged.

SEE ALSO: Tesla Held Ceremony for Delivering the First Batch of Made-in-China Model 3 Cars

Meanwhile, Tesla has announced a cut in the price of the Shanghai Model 3 cars from 355,800 yuan ($50,829) to 323,800 yuan. According to national policy, all Models 3 cars qualify for an electric vehicle purchase tax exemption and a 24,750 yuan new energy subsidy. This will bring the final price for Chinese consumers down to 299,000 yuan.

Tesla confirmed to China Business News that the Shanghai factory has reached its current production capacity of 1,000 Model 3 vehicles per week, and is expected to produce 3,000 vehicles per week in the near future. Tesla’s Fremont plant in the United States, which is 95 percent automated, achieved its goal of producing 5,000 vehicles a week in the middle of last year. Sources say that the Shanghai gigafactory may not reach such a high rate of automation.