Tesla Reportedly Preps Budget Model 3 for China as Shanghai Gigafactory Ramps Output

Tesla is planning to introduce a standard version of the Model 3 in China, with production lines already prepared at its Shanghai Gigafactory, according to information disclosed by X blogger @tslaming.

In October last year, Tesla released standard versions of the Model 3 and Model Y on its North American website.

Based on overseas specifications, the Model 3 standard version features a systematic reduction in configurations to lower costs, with a starting price of $36,990 in North America, $5,500 cheaper than the rear-wheel-drive variant.

Overseas data show the model removes around 20 features compared with existing versions.

Changes include replacing leather seats with fabric, removing seat ventilation and ambient lighting, eliminating the rear entertainment screen, downgrading the audio system, and converting some electric adjustments to manual controls.

In terms of sound insulation, the windows shift from double-layer to single-layer glass.

On performance, the vehicle accelerates from 0 to 100 km/h in about 6.2 seconds, slightly slower than the current long-range rear-wheel-drive version.

The model has been widely referred to as a “low-cost” version overseas.

Considering domestic manufacturing costs and configuration changes, the market generally expects the starting price in China to fall below RMB 200,000 ($29,000), further penetrating the mass-market segment.

Additional confirmation comes from China’s Ministry of Industry and Information Technology (MIIT) filings.

In the “Catalogue of NEV Models Exempt from Purchase Tax (26th Batch)” released at the end of 2025, a Tesla model named “Model 3 Standard Range Upgrade Version” was included.

The filing shows the vehicle is equipped with a 52.9 kWh battery pack and offers a CLTC range of 480 km, significantly lower than the 634 km range of the current entry-level rear-wheel-drive version.

Notably, the low-cost Model 3 is not limited to North America.

Since January this year, it has been successively launched in Thailand, the Philippines, and South Korea, all supplied by the Shanghai Gigafactory.

From a production and sales perspective, Tesla continues to maintain high capacity utilization.

Data from the China Passenger Car Association show that wholesale volume from the Shanghai Gigafactory reached 58,599 units in February, up 91% year-on-year, though down 15.2% from January.