The country’s new car market might be in a state of turmoil, but Tesla’s plans for China haven’t changed. It still wants to capture a big chunk of the country’s “new energy” vehicle market, and the creation of a wholly owned assembly plant, plus a range of local suppliers, makes the company’s goal a near certainty.
As it struggles to ramp up production at its Shanghai facility, Tesla plans to go on a price-slashing spree in 2020, a report claims.
According to sources who spoke to Bloomberg, the inflated prices of Chinese-market Tesla Model 3s could get a serious haircut in the second half of next year. We’re talking the potential for a 20-percent price cut for a car that currently starts at $50,800.
Such a cut would bring the model’s base price below $43,000, giving it an edge over many foreign competitors, as well as a number of domestically produced EVs.
The Model 3 is by far Tesla’s best seller regardless of market (LMC Automotive claims the company sold a total of 10,542 cars in China in Q3 2019), and the Shanghai plant is tasked with building the company’s entry-level model in great numbers, thus avoiding an expensive boat trip (and import tariffs) while freeing up capacity in Fremont, California. The automaker received regulatory approval to start production in October, though actual deliveries to Chinese buyers might only take place in the coming few days. (Earlier this year, Tesla said it expected to build 1,000 Model 3s per week at the new plant, so the clock’s running out on that promise.)
Helping Tesla’s Chinese manufacturing venture are two new battery suppliers. The first, LG Chem, has a factory not far from Shanghai. The other, China’s Contemporary Amperex Technology Co, could begin supplying battery cells as early as 2020, sources tell Bloomberg.
Another helping hand comes by way of the Chinese government, which recently made locally-built Model 3s eligible for a state subsidy of up to $3,500.
[Image: Tesla]
That plant is a modern miracle. Last year at this time, it was a grassy field; now it’s already producing cars.
https://insideevs.com/news/388012/tesla-gigafactory-3-progress-december-12-2019/
When you specify that it is a modern miracle, I suppose you’re sort of acknowledging that this is something we could have pulled off a century ago.
it’s amazing what you can do when you have the backing of a fascist government who gives no f**ks who or what stands in its way.
Am I to assume that TESLA partnered with a local Chinese firm, in the typical 49/51% “joint venture,” to manufacture in China, and therefore be forced share all its intellectual property?
If so, TESLA will forfeit any technical advantage it enjoys.
No, Tesla 100% owns this facility, a first for any foreign car company in China.
For that, I am both excited and surprised. I have no idea how TESLA could have negotiated such a situation when no other Western manufacturer has.
> For that, I am both excited and surprised. I have no idea how TESLA could have negotiated
> such a situation when no other Western manufacturer has.
Thank President Trump for that.
probably lots of assurances on things like local sourcing of parts. And I’m sure a heavy helping of palm-greasing.
How do the cool kids in China view the whole Musk/Tesla thing?
Is it desirable or a product of the evil capitalist competition?
Lol. China is as capitalist as they come.
Maybe MORE so these days considering how much they like to flaunt it in increasingly gaudy ways.
Yeah, they seem to still have the dictatorship for a government, but they’re economic system is oddly becoming more capitalistic than the US. Vietnam is the same way. The crazy regulations here are becoming a very big hindrance. The EU is even worse. I would find it funny if I didn’t live here, but I think our future is going to be very bleak.
they’re “capitalist” so long as you have the right connections. if you’re just some schlub, they’re as fascist as ever.
Yep…fiercely capitalist…Even the Government has to be purchased!
I guess Elon is too young to know about another feisty entrepreneur, a guy named Osborne. He pre-announced new & improved products that killed the sales of the existing and warehoused stuff.
Sure, but that hasn’t happened with Tesla.
http://carsalesbase.com/us-car-sales-data/tesla/
ATL’s cells are crap compared to Panasonic. I wouldn’t buy a Model 3 with ATL cells. Most likely a way to cut costs for the Chinese market.