In an effort to stoke enthusiasm for its cars in China, Tesla has begun showing off the first Model 3 sedans produced at its massive Gigafactory in Shanghai.
Chinese media released video of some of the Model 3 cars to come off Tesla’s Shanghai assembly line. Officially, the Teslas showed off are part of a pilot program, and Tesla is seeking to get final certification from the Chinese government to begin large-scale vehicle production, with a goal selling made-in-China Teslas by the end of this year.
Tesla broke ground on the Shanghai Gigafactory in January, and Chief Executive Elon Musk has said the facility will be capable of producing as many at 500,000 cars a year. The company hopes that by building and selling cars directly in China, it will be able to get its vehicles to customers faster than by importing the cars directly from the United States.
By building cars in China, Tesla could also keep its prices down as such vehicles wouldn’t be subject to tariffs imposed on cars made in the U.S. and shipped over to China.The Model 3 cars made in China will reportedly come with an entry-level price tag of $50,000. Model 3s made in the U.S. start at $35,000, but often cost more when accessories and additional features are included.
China is seen as a critical location for Tesla as it seeks to build its international presence. After the U.S., China is the second-largest single-nation in terms of business for Tesla, and it accounted for $669 million of Tesla’s $6.3 billion in total sales during the third quarter. Those sales also rose by more than 63% from the same period a year ago.
