China went to reduce tax rates for Tesla

Good news for Ilona Mask: China has reduced tax on Model 3 cars assembled in Shanghai.

This decision is mutually beneficial. The automaker reduces costs for organizational issues, as a result of which it can reduce the cost of electric cars for buyers from China. About this possibility writes Bloomberg.

It is also noted that buyers of a Model 3 car will receive a government grant of $ 3600. The electric car itself will cost $ 50000.

Bloomberg writes that the cost of a car could drop significantly already in 2020. Presumably the price will fall by 20%. In addition to reducing the tax rate, the price will be positively affected by an increase in the number of components manufactured directly in China. There will be no need to spend a lot of money on the purchase of imported parts.

If the forecasts come true, Tesla will be able to compete more effectively not only with the world's largest brands, but also with local manufacturers in China: for example, NIO, Xpeng.

The increase in the number of Tesla cars in the long run is expected to have a positive effect on the environmental situation in China.