Tesla began the new year with an aggressive bid to expand its presence in the Chinese market, lowering the price of its base version of the Model 3 made in China (which includes the automaker’s basic Autopilot as standard).
Tesla on Friday revealed the long-awaited reduction in price of its cheapest Model 3 version. The China-made Model 3 now starts at RMB 299,050 ($42,920), according to the company’s website.
As expected, such a decrease in prices entailed an influx of orders. “Our store looks like a grocery market. So many people inside, ”said one of the store’s employees,“ I lost my voice talking to so many customers non-stop,” she continued.
Wonder how crazy MIC #Model3 sales is after price drop a few days ago. “Our store looks like a grocery market. So many people inside”, said one sales rep. She further said “I lost my voice talking to so many customers non-stop”. A good problem to have? @elonmusk pic.twitter.com/G8JiJdonXJ— Ray4️⃣Tesla⚡️🚘☀️🔋 (@ray4tesla) January 5, 2020
Excuse me, how many new orders of the Made-in-China Model 3 per minute?? pic.twitter.com/nJltU6V6L2— Vincent (@vincent13031925) January 6, 2020
It should be noted that everyone who ordered the MIC Model 3 before the price reduction also receives this discount if the car has not yet been delivered to them.
Tesla late last year reported robust 48% year-on-year revenue growth to $2.14 billion in China for the first three quarters. A report by well-known auto market blogger, Chang Yan, said that the company’s sales target in China could increase 500% to 250,000 units in 2020 as a result of the price reduction.
This number means that Model 3 should become the main product in the Chinese automobile market, and it really must compete with cars, which is what happens thanks to this price reduction.
While the state of China provides subsidies for MIC Model 3s, a large number of orders should be expected by Tesla, same as we saw in the markets of Norway and the Netherlands last year.
Featured image: @ray4tesla/Twitter