The China-built Tesla Model 3 is unveiled at a Tesla store on November 22, 2019 in Shanghai, China.
Zhang Hengwei | China News Service | Visual China Group | Getty Images
U.S. electric vehicle maker Tesla is considering cutting the prices of its China-built Model 3 sedans by 20% or more next year, Bloomberg reported on Wednesday, citing people familiar with the plans.
Prices of the cars, which will be manufactured in Tesla's new Shanghai factory, will stand at 355,800 yuan ($50,547.67) and are likely to be lowered from the second half of 2020, the report said.
The scale and timing of price cuts could change based on market situations, the report said.
The U.S. carmaker aims to lower costs by using more local components, allowing it to import fewer parts and avoid tariffs, according to Bloomberg.
Tesla declined to comment when contacted by Reuters.