China-made Tesla Model 3 Long-range RWD comes off prodution line ahead of schedule

Posted on 5/15/2020 3:19:49 PM

The long-range rear-wheel-drive (RWD) version of the China-built Model 3 has rolled off the production line ahead of schedule, and is soon to be handed over to consumers, Tesla announced on May 14 via its Sina Weibo account.
The price of the homegrown model will remain unchanged after July 22, the expiry date of a three-month grace period China’s policy makers set for the newest NEV subsidy policy.
China's government stated in late April that the state's NEV subsidy will be extended by two years to 2022, but it is only applicable to vehicles priced below RMB300,000 unless they carry a swappable battery pack. It means that once the transition period is ended, the China-made Model 3 long-range RWD, which is currently priced at RMB344,050 after subsidy, will be no longer qualified for the incentive policy.
Thus, Tesla's decision to keep the previous price implies that it will dig into its pockets for offsetting the price gap rather than transferring the burden to consumers.
Tesla reduced the price of the China-made Model 3's the Standard Range Plus on May 1 to RMB291,800 from RMB323,800 before subsidy. The adjustment equates to around a 10% discount over the vehicle’s previous value, making the model priced below the government’s subsidy threshold. With the cash handout applied, the locally-made Model 3’s price at present stands at RMB271,550.
Tesla's China wholesales of locally-produced model slumped by 64% to 3,635 units in April from 10,160 units in March, according to the China Passenger Car Association (CPCA). The decrease may be partly attributable to consumers choosing to delay car purchase until May, when the price of the Standard Range Plus version is lowered.

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