Tesla’s Shanghai factory has only been up and producing vehicles for a couple of months. Despite this, Tesla is already putting price cuts into effect for the Model 3s that it is producing there.

On Thursday, the company cut the price of the Model 3 by a whopping 16%, from 355,800 yuan to 299,050 ($42,919), according to CNBC. The reduction is partly due to receiving Chinese subsidies for electric vehicles. The subsidies amounted to about half the cut, totaling 24,750 yuan.

The price cuts are also part of a larger group of changes Tesla has made to its sales policy in China, including changing prices for car accessories and home charging facilities. Tesla has said that it plans on delivering cars made at the $2 billion Shanghai plant on January 7.

This follows 15 employees who took delivery of their vehicles earlier this week after purchasing them back in October.

Tesla has said that 30% of its China supply chain was localized, which means that some parts are still shipped in to help build vehicles. The company is aiming to localize all of its China supply chain by the end of 2020.

Shanghai’s goal is to produce 1,000 unit per week, or about 280 cars per day.

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