Gigafactory 3

Tesla's Made-in-China Model 3 Qualifies for Local Government Incentives


Tesla China qualified for government incentives presumably for its locally-made  Model 3 sedan. These incentives gives the Made-in-China Tesla Model 3 a competitive edge against other EVs in the local market.

According to an official government document, China’s Ministry of Industry and Information of Technology has put the locally-produced Model 3 on a list of vehicles that will receive subsidies for new energy cars. However, the level or amount of incentives Tesla’s sedan will be given was not disclosed.


Tesla enthusiasts and people close to the matter have speculated a notable reduction in price due to the incentives. Tesla supporter Kelvin Yang theorized that the MIC Model 3 could get a price reduction of around CN¥24,750 or US$3,500. Tesla China revealed the tag price of its sedan earlier this year. The locally-made Model 3 will cost CN¥355,800 or around US$50,800 for the Standard Range Plus MIC Model 3, with basic Autopilot as a standard option.

With government incentives, the Made-in-China Model 3 may cost local customers around CN¥331,050 or about US$47,300. For comparison, in the United States, Tesla’s Standard Range Plus RWD with basic Autopilot costs US$39,490. 


The government incentives give Tesla an edge in the Chinese market, which it didn’t have before the construction of Gigafactory 3 in Shanghai. These advantages will become even more prominent when Tesla starts producing the Model Y, its crossover SUV for the Chinese market.

In related news, a new Airport Express Line has been announced that will run from the Shanghai Pudong Airport to the Lingang Industrial Zone, shared Tesla owner and enthusiast Jay in Shanghai via Twitter. Trips on this line are expected to be as quick as 15 mins., giving Tesla's Gigafactory 3 an efficiency boost. With this line, any goods that Tesla transports through the airport could reach Gigafactory 3 faster.

About the Author

Claribelle Deveza

Claribelle Deveza

Longtime writer and news/book editor. Writing about Tesla allows me to contribute something good to the world, while doing something I love.

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