Today, Tesla 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), which corresponds to an 8% reduction.
Tesla Model 3 Long Range Dual Motor AWD now costs 309,900 RMB (45,638.63 USD), which corresponds to an 11% price reduction.
Tesla China Officially Updated Model 3 (LFP Battery) From Giga Shanghai New Priceshttps://t.co/LDqEHsiWyO— Tesmanian.com (@Tesmanian_com) October 1, 2020
Due to this price drop, all stores in China have experienced an explosion in demand. @ray4tesla/Twitter reports that according to a sales representative the first day of sales was so insane that store employees hardly had time for meals and to chat with customers.
Wonder how crazy MIC Model 3 sales was on the first day of price cuts. According to a sales rep, all stores were flooded with new orders and store employees hardly had time for meals & communicating with customers. Q4 will be insane. pic.twitter.com/vHN4CsrMor— Ray4️⃣Tesla⚡️🚘☀️🔋 (@ray4tesla) October 1, 2020
We also contacted our sources in China who double confirmed that, due to price adjustments, all stores are overcrowded with customers rushing to order the China-made Model 3 at a freshly reduced price.
To maintain competitiveness and affordability, Tesla has come up with excellent solutions to reduce its EV prices. Eliminating cobalt is a great way to achieve this, for example, as the element is very expensive.
In addition, the process of mining cobalt in some places is associated with serious ethical issues. CEO Elon Musk said the company will work to reduce cobalt use to near zero. The facts show that he remains true to his word.
© 2020, Eva Fox. All rights reserved.
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