Tesla Takes Orders, Cuts Price for China-Built Model 3s

Tesla Inc. has begun accepting orders in China for locally built versions of its Model 3 electric sedan.

The company also set a lower base price of 328,000 yuan ($47,500) for the car in China. That’s 49,000 yuan ($7,100) less than the U.S.-built version (pictured), which also faces a 25% import tariff, Bloomberg News points out.

Tesla says it won’t be able to deliver Chinese-made Model 3s until the assembly plant it is building in Shanghai begins limited operation in 6-10 months. The company said earlier that it hopes to begin low-volume assembly at the facility even before construction is completed.

Establishing local production will enable the company to cut shipping costs, shorten delivery times in the country and avoid U.S.-China trade issues, including China’s current 25% import tax on cars from the U.S. The Shanghai plant will have initial capacity to build 250,000 Model 3 and the upcoming Model Y compact crossover vehicle.

Separately, Tesla says the Model 3 also can now be ordered in Australia, Hong Kong, Ireland, Japan, Macau and New Zealand, Bloomberg reports. It isn’t clear when those orders will be filled or how the carmaker will supply them.