Tesla to start delivering Model 3 to China buyers in March

Tesla aims to accelerate Chinese sales that have been hit hard by the impact of trade tension between Washington and Beijing.

Update: 2019-01-06 05:13 GMT
Shares of the company, which produced 5,300 Model 3s in the last week of its third quarter ended Sept. 30, were down nearly 2 percent in late-afternoon trading.

Tesla Inc said on Friday it plans to start delivering Model 3 cars to customers in China in March, cementing a time frame that the US electric vehicle (EV) maker’s chief executive, Elon Musk, tweeted about late last year.

The California-based firm, which aims to accelerate Chinese sales that have been hit hard by the impact of trade tension between Washington and Beijing, said in a statement the starting price for a Model 3 in China would be 499,000 yuan (USD 72,000).

Tesla cut prices for its Model 3 last month, the third time in the last two months for the firm to adjust prices in China.

In November, Tesla cut the prices of its Model X and Model S in China by 12 to 26 percent.

Tesla has opened a tender process to build a USD 2 billion plant in Shanghai - dubbed a Gigafactory - and at least one contractor has started buying materials, Reuters reported earlier last month.

The automaker has said it aims to initially produce about 3,000 Model 3 vehicles per week at the plant and localise its manufacturing and supply chain.

The factory, Tesla’s first in China, marks a major bet by the EV maker as it looks to bolster its presence in the world’s biggest auto market where it faces rising competition from a swathe of domestic rivals, while its earnings have been hit by increased tariffs on US imports.

(Source)

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