US electric vehicle maker Tesla is considering cutting the prices of its China-built Model 3 sedans by 20 percent 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) 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 added.