Tesla PlanTesla Plans Production of Model Y in Chinas Production of Model Y in China

27. August 2020

According to information from the company, the US electric car manufacturer Tesla will start producing the Model Y in addition to the Model 3 at its Shanghai plant next year.

The Chinese market for new energy vehicles (NEVs) is experiencing rising demand. In July purchases of NEVs increased by 19.3 percent to 98,000 units, with the breakdown of 79,000 electric vehicles (up 24.2 percent year-on-year) and 19,000 plug-in hybrids (up 2.7 percent). Over the past 12 months, sales of electric cars have been steadily declining. The growth in July has stopped this negative trend for the time being.

Reservations are being accepted for two versions of the Model Y – a dual engine four-wheel drive, long-range version for 488,000 yuan (70,592 US dollars) and a performance version for 535,000 yuan. The long-range version will have a range of 505 kilometers and the performance version a range of 480 kilometers.

The model Y is the company’s second vehicle to be produced at the Shanghai Giga plant after the Model 3.

Tesla had again lowered the price of the Model 3 built in China a second time in order to qualify for the government incentives and encourage people to buy cars after decreasing sales in the previous months.

A Model 3 is now sold for a base price of 291,800 yuan ($41,318), before taking into account the subsidies. This is 10% less than before the electric car manufacturer announced.With the subsidy, the cost is 271,550 yuan ($38,451). Tesla must sell the car for less than 300,000 yuan to qualify for government-subsidies.

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