Tesla China removed its listing for the MIC Model 3 Long Range Dual Motor in the online configurator. There are only two MIC Model 3 trims available in Tesla China’s configurator now: the Model 3 Standard Range Plus and the Model 3 Performance.
The base Model 3 is the only one that takes advantage of China’s ¥15,840 RMB ($2,448.53) subsidy for private new energy vehicles. The subsidy for non-private individuals or vehicles used for business is ¥11,088 RMB ($1,713.97). The MIC Model 3 SR+ costs ¥266,740 ($41,232.30) RMB before subsidies and ¥260,900 ($40,)329.56 RMB after deductions.
Tesla may be using the electric motors and battery packs for the MIC Model 3 Long Range Dual Motor variant to produce the Model Y Dual Motor AWD trim. After all, the Model 3 and Model Y share similar parts. Giga Shanghai also launched the Model Y Standard Range in China, and the local market’s reception has been highly positive so far.
Given the state of the global supply chain at the moment, especially the ongoing chip shortage affecting the auto industry, Tesla may have chosen to prioritize Model Y Long Range production over the Model 3 Long Range. The decision makes sense since the Model Y is likely more profitable for the company and probably has more demand.
Giga Shanghai will most likely be exporting Model Y cars to Europe soon, too. Reservation holders in Germany have already received emails to expect delivery in Q3. Tesla will need most of its supply going toward Model Y production in China rather than the Model 3 to meet demand in Europe since Giga Berlin is not operational yet.
Initially, Giga Berlin was supposed to start producing Model Y vehicles for Europe this July. However, Giga Berlin’s final approval has not been processed by Brandenburg’s State Office of the Environment yet. So, Giga Shanghai will have to supply Model Y vehicles to Europe, at least until Giga Berlin is operational.