What happened: US electric vehicle (EV) maker Tesla is close to revealing the price of its Model 3 in China, with Bloomberg sources saying that vehicles could be priced between RMB 300,000 (around $43,400) and RMB 350,000 before subsidies. The final number is still being decided upon. The EV manufacturer plans to make an announcement on Friday, according to a post on microblogging platform Weibo, which invites people to guess the price of the domestically made model.
Why it’s important: Tesla already sells Model 3 vehicles in China, but they have to be shipped from the US, subjecting them to import tariffs and disqualifying them from government subsidies. Prices for the Model 3 currently start at RMB 377,000, including taxes and import duties. The company is currently building a factory in Shanghai, which it is counting on to increase sales in China. But competition could stand in Tesla’s way. The country is already home to nearly 500 registered EV companies, including Nio, Xpeng, Byton, and WM Motor. Telsa has also seen its share of controversy, with two of its vehicles catching fire in the Greater China area in the past two months.