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People queue up at Tesla’s Beijing showroom to put in their orders for the Model 3. Photo: SCMP Pictures

Will Tesla finally conquer mainland China with its ‘affordable’ Model 3 electric car?

Tesla

Mainland fans lined up to place orders for Tesla’s latest model on Thursday as the US automaker unveiled its first affordable vehicle targeting the mass market.

By 9am, the official opening time of Tesla’s Beijing showroom, dozens of customers had queued up outside the shop, prepared to pay an 8,000 yuan (HK$9,600) deposit to order the Model 3 electric vehicle.

Tesla accepted reservations at its Chinese showroom and experience centres starting on Thursday, with online orders beginning on Friday, marking the global unveiling of the car. Each customer can order two cars, and current Tesla owners will have priority when deliveries start.

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Reservations at stores worldwide also started on Thursday, with Tesla fans queuing up outside stores in Hong Kong and other markets.

Tesla fans have high expectations for the latest model as CEO Elon Musk has said the Model 3 would cost US$35,000 or about 226,000 yuan (HK$271,415). The Chinese price tag of Tesla’s Model S sedan, which can be delivered in the second half of this year, starting from 718,800 yuan.

The first batch will begin production at the end of next year. However, mainland buyers will need to wait longer as the first deliveries will be for the North America market. Mass-market vehicles will be delivered to the European and Asian markets gradually, the company said.

Many Chinese attracted by the price, were not put off by the long waiting time and lack of details about the new model.

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John Zeng, an analyst at consultancy LMC Automotive in Shanghai, said Tesla’s new affordable model would get the attention of mainland customers and help promote the use of electric vehicles, but it was unlikely to significantly change the market.

“The lack of charging facilities is still a factor that restricts the demand for Tesla in the mainland. And for those middle-class buyers that Model 3 targets, there are many other choices of cars that are offered at similar prices,” Zeng said.

He said Tesla was more popular in Hong Kong than on the mainland, citing a resale value guarantee scheme that allowed owners to sell their cars back to the firm at a guaranteed price and more convenient charging points as major reasons.

“Middle-class buyers on the mainland will expect a similar offer as they want value for money,” Zeng said.

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