Tesla to deliver its first China-built cars on Monday
- Prices on Tesla’s locally built Model 3, which costs from US$50,000, may be lowered by 20 per cent or more next year
Tesla will start delivering its first China-built cars on Monday, a major milestone for Elon Musk’s company as it mounts a push to expand in the world’s largest electric vehicle (EV) market.
The first 15 units of Model 3 sedans assembled at Tesla’s new multibillion-dollar Shanghai plant – its first outside the United States – will be delivered to company employees on December 30, a Tesla representative said by phone on Friday.
Tesla chief executive Musk is counting on the China plant to help build on recent momentum for the company in the world’s largest market both for EVs and cars in general. The Model 3 will compete with electric cars from local contenders such as NIO and Xpeng Motors, as well as global manufacturers including BMW and Daimler.
The Shanghai Gigafactory, which only broke ground at the start of this year, is a crucial test of Musk’s bid to keep his company profitable, as he bets big on Chinese appetite for electric cars. Musk has said he has never seen a factory built so quickly, referring to the new Gigafactory, which is located in what was originally just a muddy plot about a 90-minute drive away from Shanghai’s city centre.
With Tesla’s volatile stock price and strained finances, investors will be watching closely how the ramp-up unfolds. The multibillion-dollar investment will be a deciding factor to determine whether Tesla will be able to take on local competitors and fend off challenges by the likes of Mercedes-Benz, BMW and Audi.
