Tesla’s Gigafactory in Shanghai will play a significant role as it battles a swatch of Chinese domestic rivals in the new age vehicle market.
On Friday, U.S. electric carmaker Tesla Inc stated, it plans to start the delivery of its Model 3 sedan to customers in China in March 2019, thus cementing a time frame Tesla’s CEO Elon Musk, had tweeted late last year.
In a statement, Tesla Inc stated, the starting price for a Model 3 in China would be around $72,000 (499,000 yuan).
In December 2018, Tesla had reduced the price for the Model 3 – the third time in the last two months.
In November 2018, Tesla had reduced the prices of the Model X and Model S in China by 12% to 26%.
Tesla has taken steps to mitigate the U.S.-China trade war by building its $2 billion Gigafactory in Shanghai. In December 2018, at least one contractor had started buying materials for Tesla’s Gigafactory.
Initially, Tesla had said, it aims to produce around 3,000 Model 3 sedans per week at the plant and localize its manufacturing and supply chain.
Tesla’s Gigafactory will be its first in China. It is one of its biggest bets as it aims to bolster its presence in China – the world’s biggest auto market where it is facing increasing competition from a swathe of domestic rivals.
Tesla’s earnings earnings have been hit by U.S. trade action on China.