Connect with us

News

Tesla China sales dip in April as buyers embrace new Model 3 subsidies in May

Tesla Made-In-China Model 3 (Source: Tesla China via Ray4Tesla on Twitter)

Published

on

Tesla’s sales in China slumped in April by 64%, with the electric car maker reportedly selling 10,160 electric cars in March and selling just 3,635 in April, according to the China Passenger Car Association (CPCA). Production-wise, Tesla reportedly manufactured over 11,000 Model over the past month.

The company’s April sales, while notably lower compared to March, may be partly due to potential car buyers holding off on their purchase until May, when the price of the Standard Range Plus Model 3 was lowered to qualify for government subsidies. Prior to the price adjustment, the locally-produced Model 3 started at a price above the government subsidy’s threshold.

Tesla reduced the price of the China-made Model 3 on May 1 to 291,800 yuan before options. The adjustment equates to about a 10% discount compared to the vehicle’s prior value. With subsidies applied, the locally-made Model 3’s price now stands at 271,550 yuan.

The Chinese Government announced that electric vehicle subsidies would be extended for two years in April. However, vehicles that were over the subsidy’s 300,000 yuan price limit did not qualify for the incentive. None of Tesla’s cars that are currently available in China were under the threshold until the California-based electric car company announced a discount to the Model 3 Standard Range+ during its Q1 2020 Earnings call in late April.

“We are making rapid progress on lowering the production cost in China, and we’re actually excited to announce on this call that we will be reducing the price of the Standard Range Model 3 basically tomorrow China time,” CEO Elon Musk said during the call.

Tesla ranked as the most popular electric vehicle brand in China in 2019, leading both BYD and BAIC, according to China Daily. The company began delivering its China-made Model 3 to citizens in the country in January of this year. China is home to Tesla’s first international production facility, known as Gigafactory Shanghai, which is expected to reach a run-rate of 200,000 vehicles annually, the company said in its Q1 2020 Update Letter.

Advertisement
-

That number should increase in the future as Tesla is currently in the process of expanding Giga Shanghai. Construction crews are in the process of building the production facility’s Phase 2, which will house production lines for the Tesla Model Y. This car, Elon Musk believes, will be the company’s most successful vehicle to date.

The CPCA also reported that the Chinese electric car market grew by 9.8% from March to April. The growth is a good indicator that Tesla will continue to experience some momentum in China, the world’s largest automotive sector. Ultimately, Tesla’s sales in May would likely be an indicator to see just how well the Model 3 is really received by China’s local market.

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

Advertisement
Comments

Elon Musk

Elon Musk will give ‘every kid in America’ a SpaceX share in 2027

Published

on

Credit: Grok Imagine

Elon Musk said he is planning to give “every one of his SpaceX shares to every kid in America” in 2027, stating that “this will be the first of many.”

SpaceX went public earlier this year, and its stock price has been relatively stable since leveling off shortly after its IPO. Based on its current price, it’s a gift of just over $10 billion to children across the United States.

It appears to be closely related to President Donald Trump’s bank accounts for children, which were set up earlier this year as Trump Accounts.

Just hours earlier, Anthropic had announced the establishment of its Anthropic Public Benefit Fund, “a new wholly-owned entity dedicated entirely to public benefit.” Musk responded by stating he recommended “giving the shares directly to the public,” and that he would be doing it that way.

Just a little bit later, Musk said children across the U.S. would be getting a share from him:

Advertisement
-

There are roughly 70 million children, meaning someone under the age of 18, in the United States, according to the Federal Interagency Forum on Child and Family Statistics. Musk’s ownership of SpaceX stock shows he has around 849 million Class A shares of SpaceX stock, according to filings with the SEC.

Continue Reading

Elon Musk

Elon Musk reveals why Boring Co’s biggest East Coast project never happened

Published

on

(Credit: The Boring Company)

Elon Musk revealed in a post on X that “Permits were impossible to get,” explaining the fate of The Boring Company’s most ambitious East Coast proposal.

The comment responded to a query about what became of his July 20, 2017 announcement that he had “just received verbal govt approval” for an underground Hyperloop connecting New York City, Philadelphia, Baltimore, and Washington, D.C., capable of carrying passengers from the Big Apple to the Nation’s Capital in just 29 minutes.

The Boring Company receives verbal ‘approval’ to build NY to DC Hyperloop tunnel

The 2017 post, which envisioned city-center stations and multiple elevators in each city, sparked immediate scrutiny. Local and state officials in New York, Philadelphia, Baltimore, and D.C. said they had no knowledge of any approval. A White House spokesperson confirmed only “promising conversations” about the transformative infrastructure.

Musk clarified shortly after that there was “still a lot of work” to do for formal approvals.

Limited progress followed, as Maryland Governor Larry Hogan’s administration issued a conditional utility permit and supported work near Fort Meade. In 2018, Washington, D.C., granted a preliminary permit for site preparation and excavation on a vacant lot at 53 New York Ave. NE in the NoMa neighborhood, which The Boring Company said could become a station.

A draft environmental assessment for a D.C.-Baltimore segment was released in 2019. Yet, by April 2021, the company had removed the project from its website, and the Federal Highway Administration reported receiving no indication of further interest. Communication with Maryland officials had ceased.

The full corridor would have required coordination among the District of Columbia, Maryland, Pennsylvania, New York, the Federal Highway Administration, the Army Corps of Engineers, the National Park Service, and other agencies.

Environmental reviews under the National Environmental Policy Act, utility clearances, and approvals for novel infrastructure added to the overall complexity of the project and its approval.

Speculation on the permitting barriers centers around a few factors, but a multi-state, multi-level route involving unproven high-speed vacuum-tube technology inherently triggers exhaustive safety, environmental, and engineering reviews that can stretch for years, even for conventional projects.

Advertisement
-

There are also other elements, of course, like officials who may face political exposure if a privately funded, untested system encountered anything such as cost overruns, delays, or safety issues. On the outset of this project, there were limited things such as engineering plans or demonstrated technology maturity, which also added to the potential skepticism.

The East Coast vision for Boring Co., once framed as a privately funded revolution that could reshape Northeast travel, quietly ended without construction of the promised network. Musk’s recent statement frames the outcome as a regulatory impasse, unfortunate but not unexpected.

Continue Reading

Elon Musk

Tesla CEO Elon Musk reminds everyone about Roadster’s true meaning

Published

on

Elon Musk addresses the crowd next to the new Tesla Roadster, which Tesla offers in Performance, Thrust and Rocket versions. (Image: Tesla/X)
Elon Musk addresses the crowd next to the new Tesla Roadster, which Tesla offers in Performance, Thrust and Rocket versions. (Image: Tesla/X)

Tesla CEO Elon Musk took to his social media platform X on Sunday to remind everyone that the Roadster’s true meaning is not about company growth or adding dollars to shareholders’ pockets. Sometimes, you just do things because you can.

Following the Roadster’s epic unveiling event last Thursday, skeptics and critics of the company or the project itself came out to say that the vehicle is a pointless project because it is not geared toward growing the company, delivering supreme margins for profitability, nor does it contribute to the big picture of Artificial/Super Intelligence.

But that’s just the thing: Roadster is not meant to be some shareholder dream; it’s meant to be a vehicle that people buy just because it is something awesome, unique, and the first of its kind.

Tesla Roadster: Three configs, one can fly, 0-60 in 0.8 seconds

Musk had to remind those who are skeptical about the Roadster’s importance to the company mission that while it is not a major contributor to Tesla’s long-term goals, it is something that is being built just because it can be:

“Optimus and Cybercab will be the vast majority of Tesla’s value. The only things that will scale to incredible size (K2 and beyond) economically are super intelligence, robots, solar power, and mass to space. And, of course, if you have the first two, the rest will follow. But Roadster is super cool, so we’re doing it anyway.”

Advertisement
-

Musk has said on many occasions that Optimus would be the project that would make up the vast majority of Tesla’s value in the coming years.

Robotics will be a major focus of Tesla over the coming years, especially as Musk believes Optimus will enable work to be optional for humans and will enable what he calls “High Universal Income.”

Cybercab will be a passive income opportunity for owners, Musk and Tesla have said for a very long time, as a fleet of self-driving vehicles will operate within a ride-hailing Robotaxi service that won’t require a human driver to be present.

Tesla investors are more than enthusiastic about the company’s future projects, at least from a general consensus perspective. However, it is important to note that the Roadster is a fun and cool project that pushes the boundaries of what people thought was possible for an automobile.

What we saw last week was the first true example of a flying car, and despite the backlash about how it might not contribute to Tesla’s grand ambitions, it’s okay to have fun sometimes, too.

Continue Reading