Tesla cuts Model 3 prices to qualify for subsidies

BEIJING — Tesla Inc. has cut the starting price for China-made Model 3 sedans by 10 percent to qualify for subsidies in the world’s biggest auto market.

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

China announced plans in 2015 to end subsidies for EVs this year, but said in March it would extend them. However, it said the subsidies will apply only to passenger cars costing less than 300,000 yuan.