Tesla Model Y made-in-China could increase sales 4x with cheaper version, analyst says – Electrek
The upcoming Tesla Model Y made-in-China could increase Tesla’s sales in the important market by a factor of four with a cheaper version, says an analyst.
Tesla is preparing to launch its second vehicle produced at Gigafactory Shanghai: the Model Y.
For the past nine months, Tesla has been expanding the factory to prepare for the production of the electric SUV. The plant has more than doubled in size.
Tesla never confirmed the planned production capacity of the Model Y at Gigafactory Shanghai, but now a report from a local analyst suggests that it could quadruple Tesla’s sales in the country.
Tianfeng Securities, a brokerage firm that has been following Tesla closely in China, said in a new note to clients that they see Model Y sales reaching 30,000 units per month:
Tianfeng Securities also predicts that after mass production of China-made Model Y, monthly sales are expected to reach 30,000, and annual sales are expected to reach 360,000. It is estimated that Tesla’s overall sales will reach 880,000 in 2021, an increase of 76% year-on-year. And sales in 2022 will reach 1.28 million, an increase of 45% year-on-year.
Over the last quarter, Tesla delivered just over 10,000 Model 3 vehicles per month in China.
However, the Model Y would need to come with a cheaper option for Tesla to achieve this volume.
Tianfeng Securities analyzed Tesla’s made-in-China Model 3 pricing and Model Y US pricing to determine that Tesla could bring down the price of the entry-level Model Y in China to just 275,000 yuan:
Tianfeng Securities released a research report that, from the perspective of Tesla‘s overseas pricing strategy, the price difference between Model Y and Model 3 is only 6-9%. Therefore, after Model Y is mass-produced in China, it is expected that Tesla will continue to implement the price reduction strategy. The entry price is expected to drop to 275,000 yuan.
That’s roughly the equivalent of $41,000 USD or signficantly less than the current starting price of the Model Y in the US, but Tesla currently only offers the electric SUV in two trims.
A cheaper rear-wheel-drive option is expected to come soon.