(Bloomberg) — Tesla Inc. is set to launch its first Model 3 sedan equipped with cheaper batteries in China as soon as Thursday, allowing it to cut the cost of vehicles and boost sales in the world’s largest electric-vehicle market, people familiar with the matter said.
The mass-market Model 3s with the new batteries from a Chinese supplier will sell for 249,900 yuan ($36,800) after government subsidies, bringing the starting price of Tesla’s basic model down by almost 10%, one of the people said. The cheapest current models are 271,550 yuan after subsidies.
An advertisement for the Tesla Model 3 is displayed at a dealership in Shanghai.
Photographer: Qilai Shen/Bloomberg
Tesla’s new powertrains are expected to include a cobalt-free lithium iron phosphate (LFP) battery made by Ningde, Fujian-based Contemporary Amperex Technology Co. Ltd. The battery has a cheaper mix