Catering to Chinese Market: Tesla Reduces Price for Model 3 Power Tailgate Upgrade

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In 2020, the Model 3 vehicles manufactured by Tesla in China were not equipped with power tailgates. However, starting from February 2022, Tesla initiated a program allowing owners to pay for an upgrade to include this feature. Recently, the company has reduced the price of this upgrade by 1,000 yuan ($140).

Catering to Chinese Market: Tesla Reduces Price for Model 3 Power Tailgate Upgrade - Car News - 1

Tesla’s China-produced Model 3 sedans from 2020 did not come with power tailgates by default. In February 2022, Tesla introduced an option for owners to enhance their vehicles with a power tailgate for an additional fee. This enhancement, previously priced at 3,980 yuan, has now been adjusted to a lowered cost of 2,980 yuan, as stated in a Tesla Weibo post.

The reduction in price represents a 1,000 yuan decrease from the earlier 3,980 yuan charge. Tesla’s local production takes place at their Shanghai facility, established on January 7, 2019, and operational by the end of 2019. This facility marks China’s first foreign-owned complete automobile manufacturing project. It commenced delivering Model 3 sedans in January 2020 and expanded to include Model Y crossovers in January 2021 for the local market.

It’s important to note that the Chinese-made Model 3 vehicles delivered in 2020 lacked power tailgates, a feature introduced with locally manufactured Model Y and Model 3 units from January 2021 onward.

On February 17, 2022, Tesla unveiled an upgrade opportunity for owners of vehicles without power tailgates, priced at 3,980 yuan. The company extends a three-year warranty for this upgrade, and users can conveniently operate the tailgate through the central screen.

This decision to reduce the upgrade cost coincides with the impending launch of the enhanced Model 3 version. According to a report from August 22 by local media source 36kr, the new Model 3 is set to begin deliveries in China at the end of September. This updated model boasts comprehensive exterior and interior enhancements, potentially phasing out radar technology.

Despite Tesla not yet officially disclosing information regarding the enhanced Model 3, prospective buyers are eagerly anticipating its release and opting to wait for it, instead of choosing the current model. (Exchange rate: $1 = RMB 7.2825)