Tesla cuts starting price for China-made Model 3 cars by 8%

Marco Green
October 1, 2020

Made at Tesla's Shanghai gigafactory, the Standard Range Plus (SR+) Model 3 with Tesla's standard nickel-manganese-cobalt (NMC) battery now costs from 271,550 yuan ($A55,717 converted) before subsidies.

The updates to Tesla China's Model 3 pricing were rolled out amidst reports that the company is about to start equipping the Standard Range Plus variant of the all-electric sedan with cobalt-free lithium iron phosphate (LFP) batteries.

The cheapest current models are 271,550 yuan after subsidies.

Cumulative registrations this year of Chinese-made Model 3s, which debuted in January, reached nearly 70,000 vehicles as of the end of August, according to state-backed China Automotive Information Net. Ltd., the people familiar said, asking not to be identified because those details are private.

Now the Model 3 electric sedans made at the carmaker's Chinese plant use nickel-manganese-cobalt (NMC) batteries.

The battery has a cheaper mix of raw materials and could help Tesla compete with domestic and worldwide rivals that are flooding the Chinese market with new models. The battery has a cheaper mix of raw materials and could help Tesla compete with domestic and global rivals that are flooding the Chinese market with new models.

Tesla seems determined to start the fourth quarter strong in China, with the electric vehicle maker rolling out price adjustments for the Model 3 on October 1. CATL is expected to supply batteries to Tesla, much as it already does to several global automakers including Daimler AG, Hyundai Motor Co., Toyota Motor Corp. and Volkswagen AG. LFP batteries, while not as energy-dense as the nickel-manganese-cobalt (NMC) cells used by the company, are lower-cost and cobalt-free.

Tesla will announce the product change as early as Thursday, the two sources said.

This story has been published from a wire agency feed without modifications to the text.

Other reports by Click Lancashire

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