Elon Musk says Tesla will drop the price of the Standard Range Model 3 in China from Friday so that it will be eligible for China’s “new energy vehicle” subsidies.
Speaking at the company’s earnings call for the first quarter of 2020 on Thursday (Australian time), Musk said he was excited to announce the price drop.
China’s electric car market has suffered a blow over the last three quarters after the Asian economic leader dropped subsidies for electric vehicles.
Recent reports that China’s government was considering extending subsidies as a response to boost the economy in the wake of the Covid-19 crisis left some wondering if non-domestic auto makers, including Tesla, would be left out in the cold.
The 2 year extension ultimately included only vehicles costing RMB300,000 ($A64,85) or less. Currently, the base price for the Standard Range (SR) Model 3 made at Tesla’s Shanghai factory is RMB323,800 ($A69,995