You've successfully subscribed to ExeNews
Great! Next, complete checkout for full access to ExeNews
Welcome back! You've successfully signed in.
Success! Your account is fully activated, you now have access to all content.

Tesla "Made in China" is 13% cheaper than "Made in US"

. 2 min read

Tesla Model 3 is now available in China.

According to Tesla’s announcement last Friday, customers were able to pre-order the assembled Model 3 in China. Compared to the imported Model 3 from the US, the price of the assembled Model 3 in China will be about 13% cheaper. This will allow this reputable electric car company to take another step in conquering the world’s largest electric vehicle market.

According to Tesla’s statement, standard Model 3s assembled at the Gigafactory 3 factory in Lingang, Shanghai will cost about 328,000 Yuan (about 47,529 USD), 49,000 Yuan cheaper than the imported version from America. Tesla expects the delivery will start within the next 6 to 10 months.

A nice price for an electric vehicle

Currently Tesla’s electric cars are subject to a 25% import tax in China. Acording to researchers in the industry, 300,000 yuan for a high-end electric vehicle is very good deal for Chinese consunmers. .

If Chinese customers can get a Tesla for less than 300,000 yuan, they will buy it right away, as they are the best electric car in the world. “

Tian Maowei, business director of Yiyou Auto Service in Shanghai:

This price appear at the time of the US-China trade tension. The US government criticized China for its “compulsory technology transfer” policy in exchange for entering the country market, including revealing their most important technologies to Chinese partners to join the joint venture.

Tesla’s Gigafactory 3 plant in Shanghai on May 10, 2019.

A Tesla’s factory in Shanghai

Tesla began to build a $ 5 billion factory in January, 3 months after they found an appropriate land. The factory will produce Model 3 and Model Y, which are affordable for the Chinese market.

Gigafactory 3 is expected to ship around 3,000 cars a week in the first phase. Then increase to 500,000 cars a year when operating at full capacity.

This move will allow Tesla to compete with Chinese automakers such as Geely and SAIC, or electric car startups like Nio and Xpeng Motors. According to a report by the China Automobile Manufacturers Association, sales of electric vehicles including battery-powered vehicles and electric-powered vehicles have increased 27% this year to 1.6 million vehicles.

“The competitive environment in China nowadays is very different from 5 years before. Tesla no longer has the absolute advantage of battery technology and Interligent features. The low price of Model 3 shows the ability to be uncompetitive without the core autopilot features.”

He Xiaopeng, Xpeng’s Found and Chairman