Tesla’s made-in-China cars to qualify for subsidies
- The company’s Model 3 sedan will be priced from about US$50,000 in China
- Buyers will get a subsidy of as much as about US$3,550 from the government
Tesla’s made-in-China sedans qualified to receive subsidies in the country, a potential boon for Elon Musk’s electric car maker as it prepares to start selling locally built models in the world’s biggest market for the vehicles.
The company’s Model 3 sedan was included in a list of qualified models published by China’s Ministry of Industry and Information Technology on Friday.
That means buyers will get a subsidy of as much as about 25,000 yuan (US$3,550) from the government.
Tesla said in October the vehicles will be priced from about US$50,000 in China.
The company has said it is planning to start delivering made-in-China Model 3 cars before late January as it nears the start of mass production at its new Shanghai plant, its first outside the US.
A Tesla representative in China also confirmed the company’s locally built vehicles have been approved for subsidies.
While the government has been scaling back electric-vehicle handouts, certain support measures still exist as the country seeks to move toward cleaner energy and reduce reliance on imported oil.
The China plant will be a crucial test for Musk. as he seeks to prove the car maker can sustain profitability. The Shanghai Gigafactory, which broke ground in January, will initially build Model 3 sedans that will compete with electric cars from local contenders such as NIO and Xpeng Motors, as well as global manufacturers including BMW and Daimler.
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