U.S. electric vehicle maker Tesla Inc 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.

Axar.az reports citing Reuters that 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 bloom.bg/2Es3w0N 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.