Crazy Buying Reaction In China After The First Day Of Model 3 Price Reductions
Today Tesla started a price reduction program for Model 3 in China. The price cut affected two variants from the MIC Model 3. The standard range plus version was reduced from ¥271,550 to ¥249,000. This is equivalent to a $3500 cut. The price cut the long-range rear-wheel-drive version was approximately $5000.
This represents a big price cut that apparently means a lot to buyers. China is a key market for Tesla with a lot of potential customers. The biggest problem for Tesla sales in China is the high price of vehicles.
Model 3 Sales Soar
Today, as the price cut came into effect, orders spiked as many Chinese inhabitants rushed to their computers to order their new Tesla vehicle. According to a Tesla sales representative, all the stores were flooded with orders and employees had to work extra time in order to stay on top of demand and take care of customers.
Wonder how crazy MIC Model 3 sales was on the first day of price cuts. According to a sales rep, all stores were flooded with new orders and store employees hardly had time for meals & communicating with customers. Q4 will be insane. pic.twitter.com/vHN4CsrMor
— Ray4Tesla (@ray4tesla) October 1, 2020
This shows that Tesla certainly does not have any rumored demand issues and is, in fact, dominating and in control of the EV market. Model 3 is now cheaper in China than it was in the US, this is partly due to the fact of the more performant Chinese workforce.
This huge demand is a small precursor of what will happen once Tesla releases the under $25k Model. When this happens, it will have to be ready to significantly ramp up production. At the battery day event, Elon Musk teased that Giga Shanghai production would eventually be ramped to produce a million vehicles a year.
Tesla seems to have been able to penetrate the Asian EV market, and one can wonder when it will start producing and selling energy storage and production solutions.
A Great 3rd Quarter for Tesla
With Q3 results looming the new orders will more than likely be delivered during the next quarter. We can expect Q4 to be Tesla's most profitable quarter yet with record vehicle deliveries. What do you think will be the next move from Tesla to increase sales? Will it be another price reduction of Tesla products or vehicles? Share your thoughts and ideas in the comments below. If you can't get enough of Tesla news, here is my latest article.
Thank you to @Ray4Tesla
Guillaume Humbert a Torque News automotive journalist covering Tesla news. "The way he first heard about Tesla was when he accidentally found a livestream of one of Tesla's cars back in 2018. It may sound boring, except this car was cruising in space. Since then Humbert has been following the EV automaker closely. Any of Tesla's innovations make the future look environmentally more friendly. "I am now trying to share the hope Tesla spread and inspire others through my articles," says Humbert whom you can follow on Twitter at Thinking Enthusiast.