Tesla starts selling Shanghai-made Model Y electric SUVs in surprise launch as rivalry heats up in world’s largest EV market
- Tesla’s Long Range version of the Model Y, to be built at its Gigafactory 3 plant in Shanghai, will start from 339,000 yuan (US$52,074)
- The Shanghai-made Model Ys will come with higher specifications than California-made versions to suit the preferences of Chinese customers
Tesla’s Long Range version of Model Y, to be built at its Gigafactory 3 plant in Shanghai, will start from 339,000 yuan (US$52,074), excluding a government subsidy to prod customers to replace their petrol guzzlers for new energy vehicles (NEVs), cheaper than the price quoted six months ago when presale orders first became available for a launch expected in mid January. The Performance Range of Model Y will start from 369,900 yuan, 31 per cent cheaper than the presale quotation.
“The sharp prices cuts [on Model Y] are set to fuel competition in the premium NEV segment,” said Tian Maowei, a sales manager at Yiyou Auto Service in Shanghai. “Tesla is turning up the pressure on its global and Chinese rivals in the Chinese market, turning the customers into the beneficiaries, hence boosting overall NEV sales in China.”
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Model Y, the second Tesla vehicle to be made in Shanghai after the bestselling Model 3, can go as far as 594km (369 miles) on a single charge, with a top speed of 217km/h. The model, sporting a panoramic windscreen in the front, will have higher specifications than California-made Model Ys to cater to the preferences of Chinese customers. They include such refinements as wood panel detailing, heated steering wheels and high-efficiency particulate air (Hepa) filters for China’s frigid winters and air pollution.
Online orders started on New Year’s Day, and the first delivery can be expected within the month, Tesla said.
The Model Y’s price tag – above 300,000 yuan – technically puts it beyond the scope of the Chinese government’s price subsidy, although Tesla said it will apply to the authorities for up to 37,000 yuan in subsidies.
PingWest published an article, citing unidentified employees and suppliers, that described Tesla’s Gigafactory 3 in Shanghai as a sweat shop, a claim which Tesla disputed and threatened to sue over.
The technology is similar to radar but uses light instead of radio waves, offering higher precision in certain environments. The shorter waves also make it more ideal for imaging, offering better detail. However, the high cost led Tesla’s chief executive Musk to call the addition of lidar “a fool’s errand”.
