Tesla cuts cost for China-made Model 3 by 10% to qualify for subsidies

U.S. electric automaker Tesla Inc stated on Friday it has cut the starting price for China-made Model 3 sedans by 10% to become eligible for subsidies in China.

Tesla started making deliveries of cars from its $2 billion Shanghai auto plant in December. The automaker said it has cut the starting price for its Standard Range Plus Model 3 sedans to 271,550 yuan ($38,463.17), after getting 20,250 yuan per car as electric vehicle subsidies.

China had announced plans in 2015 to put an end to subsidies for electric vehicles this year, but stated in March it would extend them. However, it said the subsidies will apply only to passenger cars which cost less than 300,000 yuan ($42,479).