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Tesla Model Y Deliveries to Start in China This Month

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Tesla Model Y Deliveries to Start in China This Month

Tesla Inc's (NASDAQ: TSLApopular 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 (NYSE: NIO), Li Auto Inc. (NASDAQ: LI) and Xpeng Inc - ADR (NYSE: 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.

Click here to check out Benzinga's EV Hub for the latest electric vehicle news.

Photo courtesy of Tesla

 

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