Good news for Elon Musk's company: China has lowered tax duties on Model 3 cars collected in Shanghai.
This solution is mutually beneficial. The automaker is cutting down on organizational costs, which may result in lower cost of electric vehicles for Chinese buyers. Bloomberg writes about this possibility.
It is also noted that buyers of the Model 3 will receive a government subsidy of $ 3600. The electric car itself will cost $ 50000.
Bloomberg writes that the cost of the car could drop significantly in 2020. The price is expected to fall by 20%. In addition to reducing the tax rate, the price will be positively affected by an increase in the number of components produced 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 vehicles is expected to have a positive impact on the environment in China in the long term.