China Revoke Import Suspension Of Tesla’s Model 3
China canceled the suspension that it handed down to Tesla with regards to the importing of the company's Model 3 cars. China's customs bureau announced that it issued clearance to Elon Musk's firm last week.
According to Reuters, the suspension on the import of Tesla's Model 3 was revoked after the company made the necessary changes in line with China's vehicle import requirements.
"We can confirm that the warning notice on Tesla has been canceled," the official from China's customs told the paper.
China issued the suspension because the Tesla Model 3 cars that were being imported to the country did not have warning signs written in the Chinese language and it has incorrect nameplate labels too. The importing of the vehicles began last month and it will now continue with the restriction being lifted.
This means that the Model 3 being sold by Tesla in China today were made in the U.S. but once the Gigafactory that is being built right now in Shanghai is completed, then the next batch of Tesla cars will now come from a local factory. Elon Musk attended the groundbreaking ceremony in January and it was reported that the plant is nearing completion, with the initial construction expected to finish this May.
The main purpose of building the Tesla factory in Shanghai is to reduce the cost of the production and transporting of vehicles. The Gigafactory is the first ever Tesla plant that was constructed outside of the U.S., BBC News reported.
In any case, Tesla revealed last week that it succeeded in lowering the price of the Model 3 units in the U.S. It is down to just $35,000 now and the price reduction was made possible by closing down the showrooms. Tesla vowed to do something to make its cars more affordable and it finally succeeded after two years.
The more affordable Tesla cars will also be marketed to Europe and China and the units may be available within three to six months. But then again, The Verge reported that unless there will be new price cuts, the Model 3 will only get more expensive as Tesla's vehicles are no longer eligible for the $7,500 federal tax credit for electric cars.
Meanwhile, Tesla's shares plummet by more than five percent when the news of import suspension was first announced. When China cleared the company and was given the go signal to continue importing the cars, the shares increase again by three percent.