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Tesla Model 3 gets greenlight from China for local incentives

Tesla's Made-in-China Model 3. (Credit: JayInShanghai/Twitter)

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Tesla’s Made-in-China Model 3 will be receiving subsidies for new energy vehicles, a development that serves as a big push for the electric car manufacturer trying to bite a chunk of the sales pie in the world’s largest automotive market.

The vehicles qualified for government subsidy were announced by the Ministry of Industry and Information Technology on Friday through its website. Based on the list, there are two variants of the Model 3 that are granted subsidies and an initial report by Bloomberg estimates the savings to be as much as $3,550.

The U.S. carmaker plans to sell the Made-in-China Model 3 for RMB355,800 or about $50,000, as per Tesla’s initial announcements about the vehicle.

Tesla will produce the Model 3 units at its new Gigafactory in Shanghai that aims to roll out 3,000 vehicles a week, and it plans to deliver the cars to consumers before the end of January 2020 if given the green light to sell its locally-made vehicles.

The entry on the official list of new energy vehicles receiving subsidies in China shows the two Tesla vehicles which received incentives are of the same weight, with slightly different driving mileage and power consumption per hundred kilometers. The numbers hint that it could be the Model 3 Standard Range without Autopilot and Standard Range Plus that comes with basic Autopilot.

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There were earlier leaks that Elon Musk’s electric car company might produce a Dual Motor AWD Model 3 variant in China, but it wasn’t clear if these units will be similar to the Long Range Dual Motor AWD vehicles being imported by the carmaker from the US today.

Tesla Made-in-China Model 3 Subsidy (Source: China Ministry of Industry and Information Technology | Translated via Google)

With the sale of the Made-in-China 3 Model 3 units imminent, we can expect Tesla to release more information soon as it tries to penetrate the Chinese market that’s already enjoying the presence of brands such as BMW and Daimler, as well as local electric vehicle manufacturers such as Xpeng Motors and NIO.

The Gigafactory in Shanghai broke ground in January and was ready to start electric car production after just 10 months. Tesla announced during its Q3 earnings call that everything’s ahead of schedule in its factory in China and Musk’s team seems to be delivering as promised as there were also recent reports that the factory’s parking lot is starting to fill with locally-produced Model 3 units.

As China pushes for more electric vehicles on the road, the subsidy for Made-in-China Model 3 will help Tesla even convince more locals to get behind the wheels of their electric vehicles. If the Made-in-China Model 3 succeeds in the market, there’s a good chance that the electric car maker cam bring the Model Y to the local Chinese market as well.

A curious soul who keeps wondering how Elon Musk, Tesla, electric cars, and clean energy technologies will shape the future, or do we really need to escape to Mars.

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Tesla dispels reports of ‘sales suspension’ in California

“This was a “consumer protection” order about the use of the term “Autopilot” in a case where not one single customer came forward to say there’s a problem.

Sales in California will continue uninterrupted.”

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Credit: Tesla

Tesla has dispelled reports that it is facing a thirty-day sales suspension in California after the state’s Department of Motor Vehicles (DMV) issued a penalty to the company after a judge ruled it “misled consumers about its driver-assistance technology.”

On Tuesday, Bloomberg reported that the California DMV was planning to adopt the penalty but decided to put it on ice for ninety days, giving Tesla an opportunity to “come into compliance.”

Tesla enters interesting situation with Full Self-Driving in California

Tesla responded to the report on Tuesday evening, after it came out, stating that this was a “consumer protection” order that was brought up over its use of the term “Autopilot.”

The company said “not one single customer came forward to say there’s a problem,” yet a judge and the DMV determined it was, so they want to apply the penalty if Tesla doesn’t oblige.

However, Tesla said that its sales operations in California “will continue uninterrupted.”

It confirmed this in an X post on Tuesday night:

The report and the decision by the DMV and Judge involved sparked outrage from the Tesla community, who stated that it should do its best to get out of California.

One X post said California “didn’t deserve” what Tesla had done for it in terms of employment, engineering, and innovation.

Tesla has used Autopilot and Full Self-Driving for years, but it did add the term “(Supervised)” to the end of the FSD suite earlier this year, potentially aiming to protect itself from instances like this one.

This is the first primary dispute over the terminology of Full Self-Driving, but it has undergone some scrutiny at the federal level, as some government officials have claimed the suite has “deceptive” naming. Previous Transportation Secretary Pete Buttigieg was vocally critical of the use of the name “Full Self-Driving,” as well as “Autopilot.”

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New EV tax credit rule could impact many EV buyers

We confirmed with a Tesla Sales Advisor that any current orders that have the $7,500 tax credit applied to them must be completed by December 31, meaning delivery must take place by that date. However, it is unclear at this point whether someone could still claim the credit when filing their tax returns for 2025 as long as the order reflects an order date before September 30.

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tesla showroom
Credit: Tesla

Tesla owners could be impacted by a new EV tax credit rule, which seems to be a new hoop to jump through for those who benefited from the “extension,” which allowed orderers to take delivery after the loss of the $7,500 discount.

After the Trump Administration initiated the phase-out of the $7,500 EV tax credit, many were happy to see the rules had been changed slightly, as deliveries could occur after the September 30 cutoff as long as orders were placed before the end of that month.

However, there appears to be a new threshold that EV buyers will have to go through, and it will impact their ability to get the credit, at least at the Point of Sale, for now.

Delivery must be completed by the end of the year, and buyers must take possession of the car by December 31, 2025, or they will lose the tax credit. The U.S. government will be closing the tax credit portal, which allows people to claim the credit at the Point of Sale.

We confirmed with a Tesla Sales Advisor that any current orders that have the $7,500 tax credit applied to them must be completed by December 31, meaning delivery must take place by that date.

However, it is unclear at this point whether someone could still claim the credit when filing their tax returns for 2025 as long as the order reflects an order date before September 30.

If not, the order can still go through, but the buyer will not be able to claim the tax credit, meaning they will pay full price for the vehicle.

This puts some buyers in a strange limbo, especially if they placed an order for the Model Y Performance. Some deliveries have already taken place, and some are scheduled before the end of the month, but many others are not expecting deliveries until January.

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Elon Musk takes latest barb at Bill Gates over Tesla short position

Bill Gates placed a massive short bet against Tesla of ~1% of our total shares, which might have cost him over $10B by now

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Elon Musk took his latest barb at former Microsoft CEO Bill Gates over his short position against the company, which the two have had some tensions over for a number of years.

Gates admitted to Musk several years ago through a text message that he still held a short position against his sustainable car and energy company. Ironically, Gates had contacted Musk to explore philanthropic opportunities.

Elon Musk explains Bill Gates beef: He ‘placed a massive bet on Tesla dying’

Musk said he could not take the request seriously, especially as Gates was hoping to make money on the downfall of the one company taking EVs seriously.

The Tesla frontman has continued to take shots at Gates over the years from time to time, but the latest comment came as Musk’s net worth swelled to over $600 billion. He became the first person ever to reach that threshold earlier this week, when Tesla shares increased due to Robotaxi testing without any occupants.

Musk refreshed everyone’s memory with the recent post, stating that if Gates still has his short position against Tesla, he would have lost over $10 billion by now:

Just a month ago, in mid-November, Musk issued his final warning to Gates over the short position, speculating whether the former Microsoft frontman had still held the bet against Tesla.

“If Gates hasn’t fully closed out the crazy short position he has held against Tesla for ~8 years, he had better do so soon,” Musk said. This came in response to The Gates Foundation dumping 65 percent of its Microsoft position.

Tesla CEO Elon Musk sends final warning to Bill Gates over short position

Musk’s involvement in the U.S. government also drew criticism from Gates, as he said that the reductions proposed by DOGE against U.S.A.I.D. were “stunning” and could cause “millions of additional deaths of kids.”

“Gates is a huge liar,” Musk responded.

It is not known whether Gates still holds his Tesla short position.

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