Tesla has denied reports that it plans to introduce a lower-cost version of its Model 3 sedan in China, following widespread speculation on social media.
Citing the company, local outlet Caiwen reported that Tesla has no plans to launch a cheaper Model 3 variant in the Chinese market and has not established any related production lines at its Shanghai factory.
Tesla said its Giga Shanghai facility remains focused on producing and delivering existing Tesla Model 3 and Tesla Model Y vehicles, including both domestic sales and export orders. The company added that there are currently no plans to introduce additional production capacity for a budget version of the Model 3 at the site.
Rumors had circulated earlier in the week suggesting Tesla could bring a lower-priced Model 3 to China, potentially reducing the starting price to below 200,000 yuan ($28,930) to broaden its customer base.
Tesla launched a more affordable Model 3 variant in the United States in October 2025, priced from $36,990, with some non-essential features removed. However, the company indicated that this version is not planned for the Chinese market.
The Model 3 currently has four variants available in China, with starting prices ranging from 235,500 yuan to 339,500 yuan. The entry-level rear-wheel-drive version remains the main offering, with a driving range of 634 kilometres under CLTC standards.
The clarification comes as Tesla’s sales in China show signs of recovery. Retail sales of the Model Y rose sharply in February, while Model 3 sales also increased month-on-month despite a year-on-year decline.
The move highlights Tesla’s current strategy of focusing on existing product lines in China as competition intensifies in the world’s largest electric vehicle market.
