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by Claribelle Deveza December 03, 2019

Tesla's Made-in-China Model 3 may qualify for government EV incentives, which are traditionally given only to selected local electric car manufacturers. This update was recently shared by sources in China who are familiar with the matter.

With these incentives in place, the price for Tesla’s locally-made Model 3 sedan could be reduced by around CN¥24,750 or US$3,500, as per rumors related by Tesla enthusiast Kelvin Yang. Based on Tesla China’s first official teaser about Gigafactory 3, the locally-made Model 3 was priced at CN¥355,800 or around US$50,800 for the Standard Range Plus Model 3, a car equipped with Tesla’s Autopilot as standard.

With the incentives, a Made-in-China Model 3 could 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. 

It should be noted that not all EVs that are made in China will be awarded with these incentives. Certain criteria have to be met before qualifying for these incentives, namely: a) vehicles must be environmentally-friendly, b) the cars must meet a certain range, and c) the EVs must be chosen by authorities. 

Tesla, with its Made-in-China Model 3, could be a good candidate for this government incentive. The all-electric sedan fits the first two criteria, and Tesla seems to be in good standing with the Chinese government as well.

However, nothing has been officially announced about this government incentive by either the Chinese government or Tesla China. If the locally-made Model 3 does benefit from this incentive, it is expected to take effect by December 25, 2019, stated a different source privy to the matter.

In late November, after Tesla China received its mass production certification, many expected Tesla China to get its final certification to make deliveries soon. Tesla China did send out messages to its local customers, advising them to prepare to receive their Model 3s produced in Gigafactory 3. Shortly after, Model 3 units arrived in showrooms across the country. Since then, however, that has been no news about deliveries or updates concerning them, either.

The looming incentives could be one of the reasons Tesla China may be holding back on deliveries. According to drone-operator Wuwa Vision, another reason could be that Tesla hasn’t received sales approval yet from relevant Chinese authorities.  

So, there still seems to be a lot of work to be done before Tesla’s Made-in-China Model 3 sedans are ready for release. However, it appears the government of China remains one of Tesla’s staunch supporters, which is a good sign for the electric car maker's future in the country and region.

Featured Image Credit: Wuwa Vision/YouTube 

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