Seven Tesla showrooms in Beijing recently sold 1,040 Made-in-China Model 3s in just one day. Gigafactory 3’s MIC Model 3 has been in strong demand since its price drop to RMB 299,050. Even before GF3’s MIC Model 3 delivery event, demand for the locally-made unit has been on the rise.
According to a local China news source, the domestically-produced Model 3 has become popular with Chinese consumers since Tesla reduced its price to RMB 299,050. On top of the price decrease, the MIC Model 3 also received government incentives and was approved for purchase tax exemption, making it even more attractive to mainstream Chinese buyers.
Based on the China-based outlet Weiot, consumers in the Chinese market have always been pragmatic, and cost-effective luxury products often gain popularity. The price of the MIC Model 3 seems to cater to this demographic.
According to Weiot, a total of 1,040 units of Tesla’s locally-produced sedan was sold in seven different stores in Beijing on Friday, January 3, and more vehicles were reportedly sold over the following weekend. An employee working in one of Tesla’s stores in Beijing said that each salesperson in his/her store sold at least or close to a dozen MIC Model 3s on Saturday, January 4.
According to the salesperson who talked with Weiot in Beijing, most customers visiting the stores came to look at the China-made Model 3. Most—if not all—the customers who visited the store because of the MIC Model 3 also ordered one before they leave.
Demand for Model 3s made in Gigafactory 3 has been quite a concern for TSLA bears, but it seems there was no need to worry based on the sales of just seven Tesla stores in one city in China.
Orders of 1,040 units in one day translates to over RMB 311 million worth of sales for Tesla China. Tesla’s gross margins from MIC Model 3s are still unknown, but many TSLA bulls and experts such as Sandy Munro have predicted that it could potentially be larger than the cars made in the company’s Fremont factory due to optimizations in cost.
According to Tesla China executives and the EV automaker’s Q4 2019 report, Gigafactory 3 currently has a run rate of 3,000 units a week. Even with the increased efficiency, however, Tesla China executives said Gigafactory 3 still needs to push harder to meet MIC Model 3s demand in the country.
Feature Image Credit: weiot.net