As per the report from Reuters, the California-based automotive and energy company, Tesla Inc made the announcement that it will begin taking orders for the lower-priced flagship of Model 3 car in China as a strategic move to boost China sales through trade traffic between Washington and Beijing.

The statement also detailed the fact that Chinese customers can also place orders for a long range, rear-wheel-drive Model 3 variant of the starting price of 433,000 yuan ($64,300.56), which is lower than the former starting price for a Model 3 in China which was 499,000 yuan for an all-wheel-drive long range version. The cut down in the starting price is another positive strategy aimed at expanding the customer base.

As it stands, Tesla is all set to move beyond its current trade position of importing cars it sells in China as it is already working towards building a factory in Shanghai that will roll out Model 3 cars in the initial phase.

Back in October, Tesla was recorded stating that the tariff rise on imports of U.S. autos to 40% in July by Beijing had struck a blow to its sales in China. Following up on the scenario, China has since then temporarily cut down on the additional 25% tariff, lowering it to15%.

The U.S.-made cars in China, which are quite a catch if not for the high price, have been made affordable by reducing the price and also to gain an edge over electric vehicle startups such as Nio Inc, Byton and XPeng Motors which have grown to be its stiff competitors in trade.

If all goes to plan, Tesla will commence the production at the Shanghai plant later half of this year, manufacturing 3,000 Model 3 vehicles on a weekly basis.

By stepping up its venture of car sales in China, the sales volume accrued to the giant company via its automotive industry is expected to increase by leaps and bounds in the long run.

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