Tesla China Starts Deliveries

Tesla began the delivery of it's Model 3 yesterday from its Shanghai Gigafactory. The Shanghai factory, the company's first outside of the US, went into production mode in October 2019. This factory is going to play a very critical role in ramping up production to meet the massive electronic vehicle demand in Asia.

Tesla produces more than 1 000 Model 3's per week in the Shanghai factory. According to Elon Musk, that number could grow to over 3 000 Model 3's per week in the near future. The headwind for Tesla in China is the immense competition from local vehicle manufacturers.

However, Tesla enjoys the same government subsidies as its local rivals since they produce the cars locally, meaning Tesla can price these cars much lower than in countries that offer no subsidies on electric vehicles. Tesla Model 3 will go for around 300 000 yuan which is much higher than the 100 000 yuan cars that account for almost half of car sales in China.

We've written quite a lot on how the China ramp-up will help with the Model 3 numbers as well as the overall Tesla delivery numbers.

The chart below show's how Tesla deliveries have increased from the year 2012 to 2019.

You will find more infographics at Statista