Tesla Starts Delivering China-Made Model Y Crossover -- Update
January 18 2021 - 1:06PM
Dow Jones News
By Trefor Moss
SHANGHAI -- Tesla Inc. delivered its first made-in-China Model Y
compact crossover vehicles on Monday, the latest milestone in the
American company's drive into the world's largest market for
electric cars.
A local Model Y buyer said he attended a Monday event at a Tesla
store in Shanghai to mark the start of deliveries and received his
vehicle. Tesla on Monday said via Twitter that "Model Y deliveries
in China have officially begun."
Tesla, which broke ground at its Shanghai plant two years ago,
rushed to start producing cars there and expand capacity.
Manufacturing cars locally helps the Palo Alto, Calif.-based
electric vehicle maker save on shipping costs and avoid import
duties for the Chinese market.
The Model Y is the second Tesla vehicle that the EV maker is
producing at Shanghai after the Model 3 sedan, which the company
started delivering a year ago in China -- which was marked with a
visit to the plant by Chief Executive Elon Musk. As it ramped up
production of the sedan last year, it was also building the
assembly line in Shanghai for the Model Y.
The Model 3 was the bestselling electric vehicle in China last
year, with more than 138,000 sold, according to the China Passenger
Car Association -- an eighth of the 1.11 million EVs sold
nationwide.
The Chinese government has set a target for EVs to account for
20% of auto sales by 2025, equivalent to around 5 million vehicles.
Most analysts expect the country's EV market to grow strongly over
the next few years in line with that objective. Several Chinese EV
startups rivaling Tesla in the country have recently unveiled, or
expressed plans to unveil, new cars -- including NIO Inc.'s luxury
ET7 sedan.
The Chinese Long-Range version of the Model Y costs $52,425,
while the Performance version, which goes on sale later this year,
is priced at $57,050. The basic Standard-Range Model Y, which sells
in the U.S. for $41,990, isn't available in China. The U.S.-built
Long Range and Performance versions cost $49,990 and $59,990,
respectively, in the U.S.
Chinese customers can buy the Model Y with a 10% down payment,
after which they would need to pay $1,467 a month for the
Performance version.
Tesla delivered nearly half a million cars globally last year,
according to a Jan. 2 statement, having begun U.S. deliveries of
the Model Y back in March. As Model Y production ramps up, China
would account for more than 40% of Tesla's global deliveries by
2022, according to a Jan. 14 research report by Wedbush Securities
Inc. Wedbush analysts also forecast that Tesla would deliver more
than 1 million vehicles next year.
The Shanghai plant had capacity to make 250,000 cars a year as
of the end of October, Tesla has said, not counting the Model Y.
The site will ultimately have enough capacity to produce 500,000
vehicles a year, according to the company.
Tesla next week plans to report fourth-quarter earnings. Wall
Street expects 2020 to mark the first time the company achieved a
full-year profit, in part aided by sales in China.
--Raffaele Huang contributed to this article.
Write to Trefor Moss at Trefor.Moss@wsj.com
(END) Dow Jones Newswires
January 18, 2021 12:51 ET (17:51 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
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