American electric vehicle manufacturer Tesla has said that it has secured subsidies for the China-built Model 3 under the country’s New Energy Vehicle (NEV) programme, Reuters reported. Two variants of the Model 3 are listed for the NEV subsidy programme, according to China’s Ministry of Industry and Information Technology. The Shanghai facility will be Tesla’s first outside the United States.

Tesla aims to produce more than 1,000 vehicles a week from its Shanghai production plant, with the aim of delivering the China-made cars before the coming Chinese New Year at the end of January. Here, the factory’s annual capacity in its first phase is expected to reach 250,000 vehicles or 4,800 vehicles per week, of which 150,000 are earmarked to be of the Model 3.

The American EV maker first arrived at a preliminary agreement with the Chinese government to build its global plant in Shanghai in July last year, and Tesla agreed 12 months later to pay China 2.23 billion yuan (RM1.33 billion) in annual tax for the construction of the Gigafactory on the outskirts of Shanghai.

Leasing terms as laid out by the Shanghai government stated that Tesla must begin generating the annual tax revenues at the end of 2023 or risk losing the land, which Tesla bought for US$2 billion (RM8.26 billion) in 2018. Prices for the China-built Model 3 starts at 355,800 yuan (RM210,370), and Bloomberg reported that buyers will get up to 25,000 yuan (RM14,781) in subsidies from the government.

The Tesla Model 3 was most recently rumoured to gain an even higher-performance variant, courtesy of a Track Mode Package hinted at by a leaked page from a Tesla parts catalog featuring the Michelin Pilot Sport Cup 2 tyre. At present, the Model 3 comprises the entry-level Standard Plus with 400 km of range, the Long Range AWD with 500 km of range, and the Performance, also with 500 km of range.

GALLERY: Tesla Model 3