- Tesla said it has no plans to introduce a cheaper version of the Model 3 to the Chinese market, nor has it built a production line for the model at Giga Shanghai.
- Giga Shanghai is currently focused on the production of existing models.
Tesla has denied plans to bring a cheaper version of its Model 3 electric sedan to the Chinese market after rumors circulated widely.
The company has no plans to introduce the cheaper standard Model 3 to the Chinese market, nor has it built related production lines for the model at Giga Shanghai, local media outlet Caiwen reported Thursday, citing Tesla.
Giga Shanghai is currently focused on the production and delivery of existing Model 3 and Model Y vehicles, and is fully committed to fulfilling domestic and overseas export orders, the US EV maker said.
Tesla said there are currently no plans to add a new production line for the cheaper Model 3 at the Shanghai factory, according to Caiwen.
Earlier this week, rumors spread widely on both Chinese and English social media platforms that Tesla was preparing to launch the cheaper Model 3 in the Chinese market.
Some speculated that the model was expected to bring the starting price of Tesla's China-made Model 3 down to under 200,000 yuan ($28,930) to expand its potential customer base.
Tesla launched the budget Model 3 in the US in October 2025, making it its cheapest model with a starting price of $36,990.
This entry-level model has been stripped of about 20 non-essential features, including switching to fabric seats and removing the ventilation function.
Currently, the Model 3 has four versions on sale in China, with starting prices of 235,500 yuan, 259,500 yuan, 285,500 yuan, and 339,500 yuan, respectively.
The entry level rear-wheel-drive version is the main model sold in China, boasting a range of 634 kilometers under CLTC conditions.
The denial comes just as Tesla's retail sales in China experienced a significant rebound in February.
While the broader Chinese auto market suffered from seasonal weakness early in the year, Tesla's share in the battery electric vehicle (BEV) market still touched its highest level in nearly two years.
The Model Y drove this sales recovery, with its retail sales in China surging 215.84% year-on-year to 25,286 units in February, which was also up 50.11% from January, according to data compiled by CnEVPost.
Retail sales of the Model 3 in China stood at 12,920 units in February, down 31.17% year-on-year, but up 687.80% from January.
($1 = 6.9132 yuan)
