According to media reports, the area of Tesla’s Shanghai factory will double to meet the future demand for Model Y domestic production.
Tesla is eager to expand the scale of its Shanghai factory. It is probably confident that its models have greatly increased sales after domestic production. Looking back at the new energy vehicle insurance data, Tesla’s sales in China in 2019 accounted for only 3.7% among new energy passenger vehicles, but after the delivery of the domestic Model 3, its market share has increased significantly to 30% this year, which means that the Tesla brand is well-recognized in the domestic market, but everyone thinks it is expensive to import.
Because Model Y is an SUV, its bigger in size than Model 3, and it is much cheaper than Model X. Tesla CEO Musk has publicly stated that Model Y will become Tesla’s most sold model so far, and its sales will exceed the total sales of other Tesla models.
Viewed from the outside, Model Y is very much like an expanded version of Model 3, of course, it can also be seen from the 70% common proportion of parts. If there are no hiccups, in the future, after the Model Y is domestically produced, it can also realize the localization of components like the Model 3 to reduce the price. The current localization rate of the domestically produced Model 3 components is only 30%. If a 70% or even 100% localization rate of parts and components is achieved, then the estimated selling price can be lowered to 217,000 yuan, which corresponds to a 25% gross margin.
At present, Model Y deliveries have recently started in United States, which is half a year ahead of the previously announced autumn 2020 delivery. The new car is positioned as a mid-size SUV and is Tesla’s fifth mass-produced model. The longest battery life version of the vehicle has a range of 316 miles, 0-60mph acceleration of 3.5s.
The price of the domestic Model Y has also been announced in March 2019. Before the subsidy, it will start from 488,000 yuan. At the same time, a seven-seat version is available (but an additional payment of 27,800 yuan); deliveries are expected in early 2021.