Tesla opens Chinese preorders for cheaper Model 3s made in China

Tesla started taking pre-orders for Model 3 cars produced at its new Gigafactory in Shanghai, China. Bloomberg reports that the cars, which are available to order exclusively in China, will have a base price of 328,000 yuan ($ 47,510), 13 percent cheaper than the model imported from the United States at a price of 377,000 yuan ($ 54,616). The 3 models that are produced in China are the Standard Plus versions of the vehicle with a range of 460 km (286 miles). Tesla says he expects to start making deliveries from the Shanghai factory in the next six to 10 months.

Tesla started making Model 3 deliveries in China in March. These locally produced cars will allow the company to avoid import tariffs, which are becoming a problem as the trade war of the Trump administration with China intensifies. The company has also said that the change in production will allow it to streamline deliveries. Chief Executive Elon Musk described the challenge of shipping his cars globally from the company's only Nevada factory as "the toughest logistics problem [he’s] ever seen" during the company's latest earnings call .

In addition to its Chinese ambitions, the company also announced that it is now accepting pre-orders for Model 3 in six more markets; Australia, Hong Kong, Japan, New Zealand, Irelend and Macao.

Tesla is working hard to increase deliveries after a difficult period for the company that saw deliveries go down from 90,000 to 63,000 in a single quarter. As a result, the company broke its profitable career to post a loss of $ 702 million. Earlier this month, Musk said the company will run out of money in 10 months if it does not make "serious" changes.

Tesla only started the construction of the Shanghai Gigafactory in early January, which makes the delivery time of six to 10 months aggressive, even for Tesla. Larger versions of the Model 3 and other Tesla vehicles will continue to be imported from the United States instead of being produced in China.