Tesla Model 3 Unlikely to See More Price Cuts in China Says Exec

Tesla has been announcing a number of price cuts to China’s Model 3 since 2019, though it appears that this pattern may have ended this holiday season.

A new report by Yahoo Finance posits that Tesla, after reaching its goal for the proportion of its parts made in China, will not reduce the cost of the Made-in-China (MIC) Model 3.

Since prices are largely contingent on the cost of raw materials and components, the company reaching its goal is makes them unlikely to cut prices, according to Tesla China Vice President Tao Lin.

In the final month of 2020, Tesla has hit record sales numbers for the Model 3, having sold a total of 21,606 units in China. The company is also offering 3 free months of Full Self-Driving to owners who purchased and receive deliveries before the new year.

China is the world’s largest auto market, making the country an important playground for California-based Tesla. Thus, the lack of discounts to come may affect its sales in 2021, especially with so many Chinese competitors, most notably, NIO and Xpeng Motors.

Whatever the case may be in China’s market, Tesla currently has a fairly strong grip on the global electric vehicle (EV) market. The Model 3 is still the world’s top-selling EV, and the company’s increasing shares almost prove it.