Tesla China announced the latest prices for the nationally manufactured Model Y, as volume production of the EV crossover begins at Shanghai’s Gigafactory. Model Y Dual Motor AWD now starts at ¥ 339,900 (about $ 52,000) and Model Y Performance now starts at ¥ 369,900 (about $ 56,600), a significant reduction from the vehicle’s initially announced price.
Prior to the recent update, Tesla China listed the price of the Model Y produced by Gigafactory in Shanghai at ¥ 488,000 (about $ 74,600) for the Dual Motor AWD variant and ¥ 535,000 (about $ 81,800) for the Performance version. In comparison, the Model Y Dual Motor AWD starts at $ 49,990 and the Model Y Performance starts at $ 59,990 in the United States.
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Updated prices for Tesla China Model Y. (Credit: Tesla) -
Current Tesla model Y price in the United States. (Credit: Tesla)
Recently, Tesla China vice president for foreign affairs stated that Giga Shanghai has achieved its localization supply chain goal. During the earnings call for the second quarter of 2020, Elon Musk estimated that Giga Shanghai’s supply chain would reach around 80% location by the end of 2020. Recent prices released for Tesla China Model Y may reflect location of the Gigafactory Shanghai supply chain.
Also interesting in the Tesla China update is the Model Y standard paint option from Giga Shanghai. Unlike its counterpart made in the USA, black is the standard ink color of the Model Y made in China. That was Tesla’s standard color with Model 3 before the company switched to the now standard Pearl White Multi-Coat that is available on vehicles manufactured in Fremont today.
With its updated price, the Y model made in China will have a much more competitive price compared to local competition, such as the NIO ES6 and EC6. Other automakers looking to enter the same premium segment as Tesla are also likely to see some pressure from the American electric car maker.
While recent price updates on the Model Y may seem drastic, EV advocates noted that the initially announced price for the all-electric crossover was already being considered inflated, probably as a means of preventing the vehicle from hampering the Model’s sales in China 3 With Gigafactory Shanghai now ready for production of the Model Y, however, it appears that Tesla China is now ready for a total attack on the country’s all-electric premium crossover market.
Tesla China also announced that it expects deliveries to Model Y customers to begin this month, as noted in a report by Reuters. About a year ago, the electric car manufacturer started delivering the Model 3 made in China to customers.
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