Model 3 down to $270,000: Tesla domesticizes supply chain with room to cut prices

It has to be said that Tesla’s price cuts have been more severe than many had expected. According to Tesla officials, from now on, the basic price of the China-made Model 3 standard battery life upgrade will be adjusted to 291,800 yuan, based on this base price, the subsidy price is 271,550 yuan. The price reduction is also a certain background, according to the previous four ministries jointly issued “on the improvement of new energy vehicles to promote the application of financial subsidies policy notice”, the new energy passenger car subsidies before the sale price of less than 300,000 yuan (including 300,000 yuan).

For this price cut, Tesla’s vice president of external affairs Tao Lin said he hopes the domestic Model 3 standard battery life upgrade will be in line with China’s new energy vehicle subsidy policy. The price reduction was intended to allow consumers to enjoy new energy passenger car subsidies, not to capture a larger market share.

Model 3 down to $270,000: Tesla domesticizes supply chain with room to cut pricesModel 3 down to $270,000: Tesla domesticizes supply chain with room to cut prices

Tao Lin also revealed that the Shanghai plant is producing at a normal rate, with a production capacity of 3,000 vehicles per week. The second phase of Tesla’s Shanghai plant, which is mainly used to produce Model Y, is under construction and is expected to go on sale next year.

According to Tao Lin, the domestic Model 3 standard battery extension version of the basic price has been 3238 million yuan, the final price is the base price and new energy passenger car subsidy after the price.

In January, The localization rate at Tesla’s Shanghai plant was about 30 percent, and it plans to increase to 70-80 percent by July next year. Tao Lin said that next, the Shanghai plant will be in accordance with the plan to speed up the localization rate of parts, “affected by the outbreak, the rate of localization and the previous plan has some changes, but by the end of this year will achieve most of the localization.” “

Some industry sources said that if Tesla increased domestic production, then the corresponding car prices will continue to adjust.