Tesla’s new Giga Shanghai-produced Model Y has a 29.4% gross margin, according to Guosen Securities, who analyzed the cost of building the car compared to its selling price.
According to the Shenzhen, China-based financial firm, Tesla’s China Model Y only costs ¥237,930 (USD 36,852) to produce. However, its selling point gives Tesla a 29.4% gross margin with a price of ¥339,900 (USD 52,646.25). Due to the current demand for the all-electric crossover that just started being produced at Giga Shanghai, Tesla has plenty of room to come down. The company will likely do this after the demand is sustained for several months because the automaker did the same thing with the Model 3 after its initial gross margin was also turning Tesla a tasty profit.
According to Guosen Securities, the cost of MIC Model Y is ¥237,930 while it currently sells for ¥339,900. That’s 30% gross margin. Over time, there is room for price to drop down to 260k while maintaining 25% gross margin. Elsewhere a report says LFP MY may debut in late 2021. pic.twitter.com/PkEoV6Vqpt
— Ray4Tesla⚡️?☀️? (@ray4tesla) January 5, 2021
Tesla’s gross margins for the Model Y are around three-times the industry average, which hover between 8-10% for luxury cars. This means Tesla is making around three times the amount of money per unit compared to any other carmaker. While demand continues to remain healthy for Tesla’s cars based on 2020 sales figures, the company is churning plenty of profitability from its Giga Shanghai-produced cars.
In June 2020, it was reported that the Model 3 SR+ that was delivered by Tesla in Q1 had a gross margin of 39.37%. This means that with its ¥271,550 price tag (USD 42,059.69), the vehicle actually cost ¥188,700 to produce (USD 26,653), Sina indicated.
The price of the Model 3 has decreased since the June 2020 report. Tesla’s base Model 3 in China now has a price of ¥249,900 (USD 38,706.38). This would be around a 24.5% gross margin if the cost to produce hasn’t changed. However, it likely has, and even if it hadn’t Tesla is still turning a profit that is more than 2.5 times the industry average.
In late December, Tesla China VP Grace Tao indicated that the company’s localization supply goal had been “basically” achieved. This effectively closed the door on the Model 3’s prices being reduced, which had occurred five times in the vehicle’s first year of availability in China. Once was due to the company’s desire to reach government incentives’ qualification, as the SR+ variant was reduced to under ¥300,000.
Reports from China indicate that demand for the new Model Y is healthy, and showrooms in the country with the largest automotive market were filled with prospective buyers just after launch.
Tesla showrooms get volunteer help amid Made-in-China Model Y launch
China has been one of Tesla’s main contributors to its 500,000 vehicle goal, which the company announced it accomplished last weekend. While exact figures are unknown, the Tesla Model 3 has dominated Chinese EV sales figures for all of 2020. Data from the EV Sales Blog indicates that the Model 3 has sold 116,119 units in China in 2020 and has been battling with the GM-backed Wuling HongGuang Mini EV, which is the only close competitor to Tesla’s affordable sedan so far.
What do you think? Leave a comment down below. Got a tip? Email us at tips@teslarati.com or reach out to me at joey@teslarati.com.
Elon Musk
Tesla China posts strong February wholesale growth at Gigafactory Shanghai
The update was shared by Tesla observers on social media platform X, citing monthly China Passenger Car Association (CPCA) data.
Tesla China sold 58,599 vehicles wholesale in February, reflecting strong year-over-year growth. The figure includes both domestic deliveries in China and vehicles exported to international markets.
The update was shared by Tesla observers on social media platform X, citing monthly China Passenger Car Association (CPCA) data.
Tesla’s February wholesale result represents a 91% increase year over year, compared with 30,688 vehicles in February 2025. Month over month, the result was down 15.2% from January, when Tesla China recorded 69,129 wholesale units.
The February total reflects combined sales of the Model 3 and Model Y produced at Gigafactory Shanghai. The facility produces the two vehicles for both domestic sales and exports.
Gigafactory Shanghai continues to serve as Tesla’s primary vehicle export hub, supplying vehicles to markets across Asia and Europe. Data compiled by Tesla watchers shows that 18,485 vehicles were sold domestically in China in January 2026, while exports accounted for 50,644 units during the same period.
Tesla has also been extending financing programs in China as it pushes to strengthen domestic demand. The company recently extended its seven-year ultra-low-interest and five-year interest-free financing programs through March 31, marking the second extension of the promotion this year.
The financing initiative was first introduced on January 6 as a strategy aimed at offsetting higher ownership costs ahead of China’s planned 5% NEV purchase tax in 2026. The promotion was originally scheduled to expire at the end of January before being extended to February and then again through the end of the first quarter.
Tesla’s efforts come amid growing competition in China’s EV market. According to data compiled by CNEV Post, Tesla’s 2025 retail sales in China reached 625,698 vehicles, representing a 4.78% year-over-year decline. Part of that decline was linked to the Model Y changeover to its updated variant in early 2025, which temporarily reduced deliveries during the transition period.
News
Tesla Model Y L spotted on transport trucks in Australia
One of the sightings was reported along Victoria Parade in Melbourne, and it showed multiple Model Y L vehicles on a transport carrier.
Tesla’s upcoming Model Y L has been spotted on transport trucks in Australia. Sightings of the six-seat extended wheelbase Model Y variant have been reported on social media platform X by members of the Australian Tesla community.
One of the sightings was reported along Victoria Parade in Melbourne, and it showed multiple Model Y L vehicles on a transport carrier.
The sighting follows earlier observations by Tesla enthusiasts in Sydney, where a covered vehicle believed to be a Model Y L was spotted at a Supercharger.
The Sydney sighting drew attention after observers noted that the vehicle’s tare weight appeared to match the ADR approval listing for the Model Y L, suggesting it could indeed be the extended wheelbase variant of the electric SUV.
Tesla has previously confirmed that the Model Y L will launch in Australia and New Zealand in 2026. The confirmation was reported by techAU following a media release from Tesla Australia and New Zealand.
The Model Y L expands the existing Model Y lineup with seating for six passengers. The vehicle features a longer body compared with the standard Model Y in order to accommodate a spacious second and third row.
Tesla has opted for a 2-2-2 seating configuration instead of a traditional seven-seat layout for the Model Y L. The design includes two individual seats in the middle row to provide easier access to the third row and additional passenger space.
Tesla Australia and New Zealand has also stated that the Model Y L will be covered under the company’s updated warranty structure beginning in 2026.
Tesla has not yet announced pricing or official range figures for the Model Y L in Australia.
Elon Musk
Elon Musk shares timeframe for X Money early public access rollout
X Money is expected to enable financial transactions within the app, expanding the platform’s capabilities beyond social media features.
Elon Musk has stated that X Money, the digital payments system being developed for social media platform X, is expected to enter early public access next month.
The update was shared by Musk in a post on X. “𝕏 Money early public access will launch next month,” Musk wrote in his post.
As noted in a Reuters report, X Money is being developed as a digital payment service that’s directly integrated into the X platform.
The system is expected to enable financial transactions within the app, expanding the platform’s capabilities beyond social media features.
Musk has previously discussed plans to introduce payments and financial services as part of X’s broader development.
Since acquiring the platform in 2022, Musk has discussed expanding X to include a range of services such as messaging, media, and financial tools.
Elon Musk has shared his goal of transforming X into an “everything app.” During a previous podcast interview with members of the Tesla community, Musk mused about turning X into something similar to China’s WeChat, which allows users to shop, pay, communicate, and perform a variety of other tasks.
“In China, you do everything in WeChat… it’s kickass… Outside of China, there’s nothing like it, people live on one app. My idea would be like how about if we just copy WeChat,” Musk joked at the time.
To prepare for the rollout of X Money, X has partnered with payment company Visa to support the development of payment services for the platform’s users. The move could allow X to tap into the growing demand for digital and in-app financial transactions as the company builds additional services around its existing user base.
Tesla China posts strong February wholesale growth at Gigafactory Shanghai
Tesla Model Y L spotted on transport trucks in Australia
