Tuesday, February 25, 2020
Home > Automotive companies' activities > TESLA TO INITIATE SELLING MADE-IN-CHINA ELECTRONIC CAR MODELS (30/12/2019)

TESLA TO INITIATE SELLING MADE-IN-CHINA ELECTRONIC CAR MODELS (30/12/2019)

The first batch of electronic model Tesla 3 consists of 15 units manufactured at Shanghai factory was sold in the market on 30/12/2019.

This is considered a huge milestone for Tesla in the process of infiltrating the greatest electronic vehicle market. The first batch was prioritized for Tesla employees.

15 Model 3 sedans are assembled in a multi-billion USD factory recently established in Shanghai. This is also Tesla’s first major factory outside America. CEO Elon Musk considered this facility to be a breakthrough on their path of earning a position on the market of electronic vehicles and traditional automobiles.

Model 3 assembled in Shanghai will come toe-to-toe with domestic opponents such as NIO and Xpeng Motors, or even with larger companies like BMW and Daimler. The Chinese facility, Shanghai Gigafactory, started construction in early 2019, which also acts as a fundamental experiment for Musk. It is plausible to say that Shanghai Gigafactory will have a major impact on Tesla’s success as it dictates the ability to compete with domestic rivals and multinationals such as Mercedes-Benz, BMW and Audi.

After China, Tesla aims to establish their own facility in Europe as well, where expectations are high for a rocketing development rate.

Musk once speculated that Tesla will produce at least 1,000 electric car units weekly at the Shanghai factory before the end of 2019. This productivity is multiple times larger than their California facility. Tesla Model 3 that are made in China will benefit from the omission of 10% tax. Selling price for each unit is expected to fluctuate at 50,000 USD.

According to plans, Tesla will discount up to over 20% of their made-in-China products in the following year when the brand starts ti implement more of local supply chains.

Source

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