Tesla said it will reduce the price of its standard range Model 3 vehicle in China to meet the government’s new eligibility requirements for subsidies.
This marks the second time this year that the automaker has reduced the price. Several months ago, the base version of China-made Model 3 was lowered by 9%.
Tesla has to cut the price of the vehicle to continue to qualify for government rebates on electric vehicles. The Chinese government instituted new regulations that require prices below 300,000 yuan for electric vehicles to qualify for subsidies.
The base price of the standard range Model 3 made in China is 323,800 yuan, or $45,754 before subsidies.
The price reduction will go into effect tomorrow in China, Tesla CEO Elon Musk said in a earnings call Wednesday. Musk, who didn’t provide a specific figure, said he is confident the vehicle will deliver a gross margin despite