On October 1, Tesla (NASDAQ: TSLA) China officially confirmed that it has started using cobalt-free lithium iron phosphate (LFP) batteries in its China-made Model 3. This, in turn, has led to significant price decreases and an incredible boost to demand.

Tesla Model 3 Standard Range Plus is now priced at 249,900 RMB after incentives (36,802.50 USD), reflecting an 8% reduction.

Tesla Model 3 Long Range Single Motor RWD now costs 309,900 RMB (45,638.63 USD), reflecting an 11% price reduction.

Due to the fall in prices, all stores in China experienced explosive demand. Even a month after the announcement, Tesla stores in China continue to be visited by hundreds of customers and they are literally overflowing.

@mingcalls/Twitter shared a video from the Tesla store. We can see that there are more than 30 customers in a relatively small room at the same time.

A Saturday afternoon at $TSLA store in Shanghai. 📈 pic.twitter.com/YIFwKK1RRc

— Ming Zhao (@mingcalls) October 31, 2020

Tesmanian also contacted our sources in China, located in different cities, who confirmed that Tesla vehicles indeed are in high demand. The number of orders has increased two to three-fold because customers are rushing to order the Chinese Model 3 at the recently discounted price.

Also, we noticed yesterday that the delivery time for Chinese customers has been increased from 1-2 weeks to 4-6 weeks. This proves that demand exceeds supply, although Shanghai is constantly increasing its production capacity.

Tesla Giga Shanghai MIC Model 3 Wait Time Now 4-6wks, as Demand Spikes on Price Drop & Exports Beginhttps://t.co/9d7L1sdgEi

— Tesmanian.com (@Tesmanian_com) October 31, 2020

On September 28, we reported Tesla China Upgrades Assembly Line at Giga Shanghai to Expand Production, Could Export to Nearby Countries by Q4

 

© 2020, Eva Fox. All rights reserved.

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Article edited by @SmokeyShorts, you can follow him on Twitter

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