Tesla China's MIC Model 3 demand could spike with Giga Shanghai's promotion and stronger support from the national government. Tesla China introduced new promotions for its MIC Model 3 at the beginning of Q2 2020 that may be too good to pass on for local consumers. Meanwhile, the Chinese government doubled down on its efforts to encourage more of its citizens to buy BEVs in the country.
Tesla China released three unbelievable promotions for Giga Shanghai's MIC Model 3 SR+ and its Long Range variant as well. The first promo says consumers could pay zero interest for two years or very low interest for two to five years. The second says MIC Model 3 buyers may pay as little as $0 for the first 12 months of ownership. Finally, the third promo says that local customers can make a downpayment as low as 15% or about RMB¥ 45,000 (or a little below US$6,500).
Credit: Tesla China
According to the promotion fliers, the deals are available for select MIC Model 3 units only, but they do apply to both Standard Range+ and Long Range RWD variants said a source close to the matter. It is unclear which specific models are eligible for the promo or how long it will last. However, it appears that consumers can avail of all three deals simultaneously.
Tesla China's upcoming promotions are quite impressive by any country's standards and will probably be hard to beat. As such, Giga Shanghai's MIC Model 3 could see a spike in demand at the beginning of the second quarter. Some may argue that Tesla China could lose some revenue from the promotions, but this could be offset by the number of orders for the locally-made Model 3.
Another factor that could increase the demand for Tesla's MIC Model 3 could be the Chinese government's increased support for EV infrastructure in the country. China's National Development and Reform Commission released data that stated the government's plan to invest an estimated RMB¥10 billion on the construction of private and public EV charging stations throughout the country.
Credit: Tesla China
Based on local news media, the investments will help add about 400,000 private and 200,000 public charging stations around the nation. By the end of the project, the number of charging stations would have increased by 50% to 1.8 million. For comparison, there were 1.2 million charging stations in China by the end of 2019.
Based on the information in the previous two paragraphs, the Chinese government has clearly decided to push BEVs and support the growth of new energy vehicles in the local car market. As the burgeoning leader in the global EV market, Tesla will likely benefit from the Chinese government's support for BEVs.
Featured Image Credit: Tesla China
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