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Tesla and EV buyers in China find relief in extended “new energy vehicle” subsidy
Chinese Premier Li Leqiang announced on Tuesday that the country would extend “new energy vehicle” subsidies for two additional years. The extension aims to combat economic downturns that have arisen from the halting of vehicle production as a result of the COVID-19 pandemic by encouraging consumers to buy electric and clean energy vehicles in its bid to promote environmental sustainability.
In China, the term “new energy vehicle” applies to any car with plug-in capabilities to receive power. This term refers to battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and fuel cell electric vehicles (FCEVs).
The extension of the subsidies will benefit electric vehicle manufacturers who sell or manufacture their products in China. Tesla is one of the companies that will benefit from the longer subsidy period as the electric automaker continues to make an impactful presence in China, the largest automotive market in the world.
Currently, subsidies in China are applied to electric vehicles with over 400 kilometers, or about 250 miles, of range. Consumers who purchase an electric car that fits the range standards are subject to receive a 25,000 yuan (USD 3,600) subsidy that decreases purchase cost, giving citizens more reason to purchase an electric vehicle instead of a petrol-based car.
According to a press release from Ideanomics, a company focused on facilitating the adoption of commercial electric vehicles, the extension of the subsidies will also allow fleet operators and manufacturers additional time to secure financing from investors. The extra time could also enable manufacturers to recover from decreases in production due to the current COVID-19 pandemic that has affected virtually all automakers across the world in the first quarter of 2020.
The addition of these subsidies could certainly help China recover from economic repression due to the coronavirus. As many portions of the Chinese economy were shut down due to the ongoing spread of the pandemic, increased subsidies that will lead to lower electric vehicle prices could encourage consumers to take advantage of cheaper car prices while they are still available.
Additionally, the Chinese Government will also begin pushing for the replacement of diesel vehicles with an emissions rating of III or higher in key cities like the Chinese capital of Beijing, a measure that will crackdown on excessive amounts of pollution that is placed into the atmosphere because of diesel vehicles. Money utilized by the Chinese Government will be used to begin replacing diesel vehicles in large cities that exceed the country’s Stage III emissions rating. This new, more strict rating would eventually clear cities high traffic cities like Beijing from heavy-duty diesel vehicles that release more than 2.1 grams of carbon monoxide per kWh of energy used, according to dieselnet.com.
The addition of these more strict and aggressive emissions standards in large cities would limit the amount of pollution that is sent into the air in areas where the population is exceptionally high, and more cars are on the road. The Ministry of Ecology and Environment in China implemented level VI fuel standards in July 2019, a measure that was used to crack down on low-grade fuel and reduce the overall presence of harmful chemicals in the atmosphere, Reuters reported.
The Ministry reports that diesel trucks accounted for just 7.8% over 300 million vehicles, but contributed to 57.3% of the total nitrogen dioxide emissions in the atmosphere. Furthermore, at least 75% of airborne particulate matter also came from diesel trucks, Reuters said.
Additional efforts to improve diesel emissions standards in the world’s largest car market could help the world work toward cleaner forms of transportation. The combination of new energy vehicle subsidies and more strict diesel truck guidelines will both contribute to a cleaner future in China, along with providing an added boost to the Chinese economy after COVID-19 made its mark in a multitude of ways.
News
Tesla Semi factory receives giant production equipment
The massive machine was transported to the Semi factory using two diesel trucks and a triple trailer.
Tesla seems determined to kick off the production of the Tesla Semi sometime this year at its Nevada factory.
This was hinted at by the arrival of massive production equipment to the Semi’s manufacturing site near Giga Nevada.
New equipment
What appeared to be a massive stamping machine has been transported to the Giga Texas complex. Spotted by longtime drone operator and Tesla Semi advocate @HinrichsZane, the massive contraption is so large and heavy that a single semi truck and trailer were not enough to move it. Instead, the massive machine was shipped to the Semi factory using two diesel trucks and a triple trailer.
The machine was fully covered in the videos from Nevada, but based on its shape and size, it appears that it is a stamping press for the Class 8 all-electric truck. Tesla is a pioneer in the use of Megacasts in the automotive industry, so it makes sense for the company to use a Giga Press for the Semi’s production as well.
Ambitious goals
The Tesla Semi factory is expected to produce a whopping 50,000 units of the Class 8 all-electric truck annually when it is fully ramped. At that output, the facility would be one of the country’s highest-volume plants for semi trailers, electric or otherwise. In a video posted earlier this year, Dan Priestley, who leads the Semi program at Tesla, stated that the company is looking to achieve volume production over the coming quarters.
This should allow the Tesla Semi factory to mass produce the vehicle by 2026. Tesla CEO Elon Musk reiterated this timeframe recently, when he responded to a post on social media platform X about Microsoft co-founder Bill Gates being bearish about battery electric semi trucks. “Tesla Semi will be in volume production next year,” Musk said in his post, which also included a laughing emoji.
Check out the drone operator’s recent footage of the Tesla Semi factory in the video below.
Elon Musk
Elon Musk argues lidar and radar make self driving cars more dangerous
The CEO is not just stating that using sensors like lidar is unnecessary to achieve self-driving.
Elon Musk is taking a firmer stance in the vision vs lidar debate for autonomous driving. In his more recent comments, the CEO is not just stating that using sensors like lidar is unnecessary to achieve self-driving.
Musk is stating that using lidar actually makes self-driving cars more dangerous.
Uber CEO’s comments
During a recent interview, Uber CEO Dara Khosrowshahi shared his thoughts on the autonomy race. As per the CEO, he is still inclined to believe that Waymo’s approach, which requires outfitting cars with equipment such as lidar and radar, is necessary to achieve superhuman levels of safety for self-driving cars.
“Solid state LiDAR is $500. Why not include lidar as well in order to achieve super human safety. All of our partners are using a combination of camera, radar and LiDAR, and I personally think that’s the right solution, but I could be proven wrong,” the Uber CEO noted.
Elon Musk’s rebuttal
In response to the Uber CEO’s comments, Elon Musk stated that lidar and radar, at least based on Tesla’s experience, actually reduce safety instead of improving it. As per the Tesla CEO, there are times when sensors such as lidar and radar disagree with cameras. This creates sensor ambiguity, which, in turn, creates more risk. Musk then noted that Tesla has seen an improvement in safety once the company focused on a vision only approach.
“Lidar and radar reduce safety due to sensor contention. If lidars/radars disagree with cameras, which one wins? This sensor ambiguity causes increased, not decreased, risk. That’s why Waymos can’t drive on highways. We turned off the radars in Teslas to increase safety. Cameras ftw,’ Musk wrote.
Musk’s comments are quite notable as Tesla was able to launch a dedicated Robotaxi pilot in Austin and the Bay Area using its vision-based autonomous systems. The same is true for FSD, which is quickly becoming notably better than humans in driving.
News
Tesla Model Y L sold out for September 2025
This was hinted at in Tesla China’s configurator for the all-electric crossover.
It appears that the Tesla Model Y L has been sold out in China for September 2025. This was hinted at in Tesla China’s configurator for the all-electric crossover.
Model Y L deliveries
Since the Model Y L’s official launch earlier this month, Tesla has been pretty consistent in the idea that the extended wheelbase variant of its best-selling vehicle will see its first deliveries sometime in September. This was quite an impressive timeframe for Tesla, considering that the Model Y L has only been launched this August.
Nevertheless, both Tesla China’s Model Y configurator and comments from company executives have noted that the vehicle will see its first customer deliveries in September. “Tesla cars are fun to drive alone, whether you have children or how many children, this car can meet all your needs. We will deliver in September and wait for you to get in the car,” Tesla China VP Grace Tao wrote on Weibo.
October 2025 deliveries
A look at Tesla China’s order page as of writing shows that the earliest deliveries for the Model Y L, if ordered today, would be October 2025 instead. This suggests that the six-seat Model Y variant has effectively been sold out for September. This bodes well for the vehicle, and it suggests that it is a variant that may be able to raise Tesla’s sales numbers in China, as well as territories where the Model Y L could be exported.
Rumors of the Model Y L’s strong sales have been abounding. After the vehicle’s launch, industry watchers estimated that Tesla China has received over 35,000 orders for the Model Y L in just one day. Later estimates suggested that the Model Y L’s orders have breached the 50,000 mark.
Tesla Semi factory receives giant production equipment
Elon Musk argues lidar and radar make self driving cars more dangerous
Tesla Model Y L sold out for September 2025
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