Tesla is cutting prices by about RMB 20,000 ($2,818) for the long-range version of its China-built Model 3 electric car, the second price cut in a month in the world’s largest market for electric autos, reported Caixin.
The reduction of about 6% off the sticker price would make up for a consumer rebate that is going away in July, meaning customers will continue to pay RMB 344,050 for the car, the American automaker said Thursday.
In late April Tesla cut the price of its China-made standard-range Model 3 sedan to less than RMB 300,000. The reduction made the vehicles eligible for state subsidies. The entry-level standard version Model 3 now costs RMB 271,550 after subsidies.
The long-range version will still not qualify for the subsidies after the price cut, but the lower price will help Tesla compete with global rivals including Daimler AG and Volkswagen AG as China’s auto market gradually recovers from the Covid-19 pandemic.