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Tesla cuts the price of Model 3 cars made in China by 10 percent to qualify for subsidies

Image:-Shanghai-made Model 3

U.S. electric vehicle manufacturer Tesla Inc (TSLA.O) said it cut the starting price for China-made Model 3 sedans by 10 per cent on Friday to qualify for subsidies on the world's largest automotive market.

Tesla, who started delivering cars from its Shanghai $2 billion car plant in December, said in a statement that it had cut the starting price for its Standard Range Plus Model 3 sedans to 271,550 yuan ($38,463.17), after receiving 20,250 yuan per car as EV subsidies.

China had announced plans this year to end subsidies for electric vehicles in 2015, but said it would extend them in March. But it said the subsidies will only apply to passenger cars that cost less than 300,000 yuan.