Mass production of Tesla Inc.’s revamped Model 3 may start in China as soon as next month, people familiar with the matter said, just as the US automaker kicks off another round of price cuts on some current models.
(Bloomberg) — Mass production of Tesla Inc.’s revamped Model 3 may start in China as soon as next month, people familiar with the matter said, just as the US automaker kicks off another round of price cuts on some current models.
The electric-car maker is in the final stages of producing display vehicles, which will be shipped to Tesla showrooms later in August, the people said, asking not to be identified because the information isn’t public.
Mass production is set to follow, beginning as soon as September. Output will ramp up through China’s National Day holiday, which starts Sept. 30, the people added.
Tesla representatives in China didn’t respond to a request for comment.
Both the revamped Model 3’s exterior design and interior components have been changed to make the car sleeker, one of the people said, adding that its overall cost will be lower than the current iteration when production is running at full capacity.
The four-door sedan was first launched in 2017 and was hugely popular not only in the US but also in China and Europe. It gradually lost its competitive edge in China, the world’s largest car market, especially after rival EVs from local players like BYD Co. and Xpeng Inc.
Earlier this week, Tesla marked down several models in China in an effort to boost sales, fueling concern that the company may rekindle a price war. It also extended an 8,000-yuan ($1,100) insurance subsidy for the base version of the Model 3 sedan, keeping the perk in place through the end of next month.
Shipments from Tesla’s China plant plunged 31% in July to the lowest level this year, even as BYD, Nio Inc. and Li Auto Inc. all set delivery records. The automaker announced last month that global production would drop in the third quarter due to downtime for factory upgrades, without offering specifics.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.