Photo: Yang Hui/GT

Tesla Model Y has received massive new orders in China following the introduction of the cheaper Standard Range version. The use of lithium iron phosphate batteries allowed Tesla to significantly reduce the price of the vehicle.

Reducing prices and releasing cheaper versions of cars has always caused a rapid increase in orders. Tesla's recently launched Model Y Standard Range is receiving a lot of new orders in China. This led to the fact that the deadline for fulfilling orders made today will not come earlier than September, that is, at least in eight weeks—which is a significant time, given the cars are produced in the country.

During this time, the Model Y production line at Giga Shanghai is expected to be fully operational to ensure availability, the Securities Daily said in a report citing a Tesla experience center employee. At the moment, all the settings for the equipment have already been completed.

Demonstration vehicles will arrive in stores shortly. "The new car scheduling orders have been delayed until September, and the number of people coming to the stores in recent days will be very high," the report quoted a Tesla insider as saying.

Model Y Long Range is sold in China for RMB 347,900 (about $53,725). However, the Standard Range uses lithium iron phosphate batteries, which reduces the range by just 69 kilometers (43 miles), but costs RMB 276,000 (about $42,600), down RMB 71,900 (about $11,125).

"The biggest impact of Tesla on rivals and the biggest contribution to consumers is to gradually break the pricing advantage of luxury brands. For BBA (Mercedes-Benz, BMW, and Audi), the pressure on their main products will be very high in the future after they lose their price advantage," the report quoted experts as saying.

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