Tesla Delivers First Model 3 Cars Produced Outside the United States In China

Tesla Delivers First Model 3 Cars Produced Outside the United States In China

Tesla’s new Chinese factory delivered its first vehicles on December 30. These are the very first models produced outside the United States. They were offered to employees to thank them for their work, while the first customers will receive their copies in early 2020.

Tesla ends the year in style on the other side of the globe. The automaker delivered its first vehicles built outside the United States on Monday, December 30. These fifteen copies of Model 3 were given to employees of the new Chinese factory of the American company, to thank them for their work accomplished in recent months. Certain others of their colleagues should also receive theirs in the coming days.

Deliveries to customers will start in January, in the words of officials, broadcast by the Bloomberg agency present at the ceremony.

Very quickly built in 2018 on a land of about 860,000 square meters near Shanghai, the Chinese Tesla Gigafactory will have cost 2 billion dollars (1.79 billion euros), for an annual production capacity targeting 500,000 vehicles. It will allow the manufacturer to sell its electric cars in China at around $ 50,000, 10% less than the current price of imported American models.

Exemption from a local tax

The Chinese authorities have also announced that the Model 3 made in China may be exempt from a local purchase tax of 10%. These cars have also already been selected from among vehicles eligible for a local subsidy of 25,000 yuan ($ 3,600). According to Bloomberg, Tesla could lower the price of its sedans in China by at least 20% in 2021. By the end of 2020, the manufacturer hopes to supply 100% locally manufactured parts (against 30% currently), which is expected to significantly reduce production costs.

The Chinese Gigafactory should initially produce at least 1,000 cars per week, the objective that the historic California factory at Fremont had long wanted. A figure that could ultimately be doubled or even tripled, Tesla hopes. In addition to the Chinese market, the manufacturer hopes to be able to sell its vehicles more easily in other Asian countries.

Strong competition

For the moment, the demand would be “very good” and Tesla would not doubt to be able to sell all its models produced on the Chinese site, according to an official questioned by Bloomberg. The American manufacturer will have to face local competitors, like Nio and Xpeng Motors and global, such as BMW and Daimler.

Last November, Tesla also announced the start of construction of another production site, this time in Europe. Based in the Berlin region (Germany), the site could represent an investment of around 4 billion euros. Initially, it should employ 3,000 people and eventually 8,000, to produce up to 150,000 electric cars per year from 2021.