Tesla is receiving "full national treatment" by Shanghai's authorities, and it is planning to focus on its Model 3 cars at its recently announced Shanghai factory, according to a report by domestic news site thepaper.cn, which cited sources close to the matter.
Tesla will be able to start mass production of the Model 3 in its Shanghai factory by 2020, according to sources. The sale price of the first made-in-China Tesla is expected to be less than 300,000 yuan ($43,600). The Model 3, the most affordable model in Tesla's range, sells at prices starting from $49,000 in the US, according to Tesla's website.
Tesla's factory is located at Shanghai's Lingang area. Cars made at the factory would supply the Chinese market and also be exported through the nearby Yangshan port to markets such as South Korea, Japan and South Asia, according to the report.
Tesla signed an agreement on July 10 with Lingang authorities to build China's first fully owned foreign car factory. The plant is expected to produce 500,000 cars per year once it reaches full capacity.
Tesla did not respond to requests for comment by Global Times as of press time.
In early August, several Chinese banks were negotiating with the Shanghai government to provide financing support for Tesla's Shanghai factory, according to media reports.
