Daily Management Review

Tesla Begins Shanghai-Made Model 3 Variants Sale In China


Tesla avoids import tax by locally manufacturing its Model 3 variants for Chinese market.

Tesla, the U.S. EV manufacturer informed that it has resumed its sale in China for “two more Model 3 variants” which were manufactured in its Shanghai based plant, which means all the “Model 3 sedans” which are being sold in China are being locally manufactured saving the company the import tax cost.
This development takes place at a time when the “Sino-U.S. trade war” seems to come to an end wherein both the countries placed heavy import tariff “on goods and services as varied as metals and cars” from the other country. Furthermore, Tesla had also suspended the operation of its “San Francisco Bay Area plant” due to the outbreak of coronavirus which is scheduled to resume production on May 4.
Tesla further informed that it has plans of commencing the delivery of “Shanghai-made Long Range Model 3 cars” from the month of June 2020 which will be priced at “339,050 yuan after subsidies”. The one with rear-wheel drive which has a “driving range of over 600 kilometres” in one charge happens to be a little different from the imported one which had “all-wheel drive” while the cost was “439,900 yuan”.
Furthermore, Reuters reported that:
“The locally made Performance Model 3, for which deliveries are slated for the first quarter next year, will be priced 419,800 yuan, the California-based automaker said without specifying the price after subsidies. Imported Performance Model 3 vehicles were priced 509,900 yuan”.
However, this move is not in line with Tesla’s C.E.O, Elon Musk’s previous plan whereby the automaker was supposed to create “more affordable versions of the Model 3 sedan at its $2 billion Shanghai factory”. In March 2020, Tesla’s sale in China booked “10,160 vehicles” while in February the figure was at “3,900”, whereby recording the “highest-ever monthly sales” in China.