0

Your Cart is Empty

China-Made Tesla Model 3 Demand Spikes After The Recent Price Adjustment

by Eva Fox January 05, 2020

China-Made Tesla Model 3 Demand Spikes After The Recent Price Adjustment

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's price cuts are expected to shake the Chinese electric vehicle industry, as this move is likely to capture market share from competitors.
  • A more affordable Model 3 is expected to catalyze EV adoption as consumers attracted by the high-profile performance EV will help lift the electric car market over the long-term.
  • Competitors such as Nio and global luxury car makers such as Daimler and BMW may feel the pinch. Nio’s lower-price model, its ES6 SUV, costs RMB 338,000 after the subsidy, while the starting price of Mercedes Benz’s EV, the EQC SUV, is nearly double that of locally built Model 3 after applying the subsidy.

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.

  • The price reduction includes a subsidy of around RMB 25,000, which China’s Ministry of Industry and Information Technology granted the company last month.
  • Beijing also exempted Model 3 buyers from a 10% purchase tax of around RMB 26,000. The company reduced the sticker price by 9% to RMB 323,800, but warned that the final sale price is subject to change in accordance with government policies.
  • The prices for the all-wheel drive models remained unchanged.
  • Tesla is scheduled to deliver the first batch of China-built Model 3sedans to consumers on Tuesday.

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.

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




Also in Tesmanian Blog

Tesla (TSLA) To Boost Q3 Earning With $2K Acceleration Boost Upgrade for Model Y Long Range AWD
Tesla (TSLA) To Boost Q3 Earning With $2K Acceleration Boost Upgrade for Model Y Long Range AWD

by Eva Fox September 25, 2020 0 Comments

Tesla software updates are a unique feature that can significantly improve the performance of your vehicle. Owners of the recently released Model Y can now instantly reduce acceleration times by 10%.
Read More
Tesla Big Battery in South Australia Earns Huge Profits, Pays for Itself in 2.5 Years
Tesla Big Battery in South Australia Earns Huge Profits, Pays for Itself in 2.5 Years

by Eva Fox September 25, 2020 0 Comments

The windfall profit means that Hornsdale's battery generated a total revenue of €54.4 million in its first two and a half years of operation, almost equal to the cost of its very construction. This means that in just two and a half years, the project has paid for itself.
Read More
Tesla to Install Cybertruck Supercharging Stalls in Pasadena California
Tesla to Install Cybertruck Supercharging Stalls in Pasadena California

by Eva Fox September 24, 2020 0 Comments

A recent presentation with Pasadena officials showed that the six spaces at the future Supercharging station will be wider and longer. Also, this presentation confirmed that the new charging station will include 6 spaces for new Cybertruck. 
Read More

Previous  / Next