Tesla Raises China-Made Model 3 Prices After EV Subsidies Cut

US electric vehicle maker Tesla's prices for two China-made model 3 variants rose after authorities cut subsidies in the world's biggest auto market. China cut subsidies on electric vehicles by 10 percent this year, effective April 23, but there will be a three-month transition period.

After the adjustment, the starting price for the Shanghai-made Standard Range Model 3 sedans will rise to CNY 303,550 from CNY 299,050, while Long Range Model 3 cars, which Tesla plans to roll out from June this year, will be priced at CNY 344,050 versus CNY 339,050, a company website showed.

Prices for those models before subsidies remain unchanged.

Tesla, which started delivering cars from its $2 billion Shanghai factory last year, saw its China registrations rose to 12,709 units in March from 2,314 in February.

The subsidies will apply only to passenger cars costing less than CNY 300,000 after the transition period. China will also in principle cut subsidies by 20 percent in 2021 and 30 percent in 2022.

Hit by the coronavirus epidemic, China's overall car sales fell 42 percent in the first three months compared with a year earlier. But the auto industry expects sales to recover as the government promises more supportive policies to boost consumption.

© Reuters

April 24, 2020