Tesla Inc's TSLA popular Model Y all electric crossover will start deliveries in China, Reuters reports.
What Happened: Tesla is selling the Model Y at a starting price of about $52,000, compared with a $49,990 starting price in the US.
The Model Y is being made in an expansion to Tesla's Gigafactory Shanghai.
Why It Matters: The Chinese market is a key one for the automaker as, besides its large size, it also comes with heavy subsidies for electric vehicle purchases. Bloomberg reported that although the Model Y does not qualify for the subsidies (unlike Tesla's Model 3), Tesla has priced the Model Y at less than its domestic rivals' models.
Domestic competitors include Nio Inc - ADR NIO, Li Auto Inc. LI and Xpeng Inc - ADR XPEV.
Its phenomenal 743% stock price rise in 2020 was based in part on expectations for its growth potential in China.
"We believe China (coming off what looks like a robust November/December) could see eye popping demand into 2021 and 2022 across the board with Tesla's flagship Giga 3 footprint a major competitive advantage," said Wedbush Securities analyst Daniel Ives on Saturday upon the release of Tesla's fourth quarter delivery results.
Photo courtesy of Tesla
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