Tesla is currently welcoming pre-orders for one of its products, the Model 3, that is manufactured in China. The company is expected to start taking pre-orders on Friday.
According to the American automaker, Tesla is contemplating leveraging the capability of its Gigafactory 3 to build this model, although it is a lower-end version of the higher version that the company currently sells to China.
According to Elon Musk, Tesla CEO, the move was made to make the vehicle available to China at a lower price.
Hence, the company decided to manufacture the vehicle in China to avoid import tariffs that may otherwise hike up the price.
The company has confirmed its plans to allow prospective buyers to send in their pre-orders for the special model on Friday.
When the pre-order eventually starts, the company will reveal the price of the vehicle.
People all over the currently are considering the cost implication of the domestic production of this model for Chinese consumers.
Without the need for expensive tariffs and possible incentives from the locals, the lower-end version Model 3 may be quite cheaper than the regular model that is shipped to the country.
The huge difference may lower the order request for the imported and the obviously more expensive higher-version model while the locally-produced model may see a significantly higher order.
This may explain why the company has decided to launch the model and ask for pre-order to enable it to address a backlog of orders as soon as possible.
