U.S. electric car maker Tesla reduced the starting price of its Chinese-made Model 3 sedans today by around 8% to 249,900 yuan ($36,805), once Chinese subsidies for electric vehicles are taken into account, as stated by its China website.
Previously, the starting price for Model 3 sedans made in Tesla’s Shanghai factory with a standard driving range was 271,550 yuan, after state purchase subsidies, reports Reuters.
Sources told Reuters that the standard range Model 3 sedans would now come with lithium iron phosphate (LFP) batteries which are cheaper than the nickel-cobalt-manganese (NMC) cells it used previously.
Tesla did not disclose what batteries the cheaper version uses.
The price for Model 3 vehicles with a longer range is now 309,900 yuan, down from 344,050 yuan.
Tesla started to deliver cars from the Shanghai factory in December, helping it save on shipping costs and tariffs for imported models.
