What happened Shares of Tesla (NASDAQ: TSLA) rose 4.5% on Thursday after the electric vehicle maker dropped the price of its Model 3 sedan in China. So what Tesla cut the base price of the battery-powered Model 3 by 8% to 249,900 yuan (approximately $36,800), after factoring in Chinese government subsidies. That puts it slightly below the price of a similar version of the vehicle in the U.S., prompting speculation that Tesla could also move to reduce prices in its home market. Tesla's stock rallied on Thursday on optimism that lower prices will help to fuel vehicle sales in China. Image source: Getty Images. A new type of battery may have made the price cuts possible. Tesla's standard-range Model 3 sedans will feature less expensive lithium-iron-phosphate batteries, rather than nickel-manganese-cobalt batteries, according to Reuters. Now what Investors are looking ahead to Tesla's upcoming third-quarter vehicle deliveries report, which is expected to be released in the coming days. The consensus forecast calls for Tesla to report deliveries of 140,000 vehicles, representing growth of 54% compared to the second quarter. Some industry watchers say strong vehicle sales in China could help Tesla top Wall Street's estimates. And price cuts might help to drive sales even higher in the quarters ahead. 10 stocks we like better than TeslaWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Tesla wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of September 24, 2020 Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Tesla. The Motley Fool has a disclosure policy.Source