Tesla China announced the domestically-made Model Y’s latest prices, as volume production of the EV crossover starts in Gigafactory Shanghai. The Model Y Dual Motor AWD now starts at ¥339,900 (about $52,000) and the Model Y Performance now starts at ¥369,900 (about $56,600), a significant reduction from the vehicle’s initially-announced price.
Prior to the recent update, Tesla China listed the Gigafactory Shanghai-produced Model Y’s price at ¥488,000 (about $74,600) for the Dual Motor AWD variant and ¥535,000 (about $81,800) for the Performance version. In comparison, the Model Y Dual Motor AWD starts at $49,990 and the Model Y Performance starts at $59,990 in the United States.
Recently, Tesla China’s Vice President of External Affairs stated that Giga Shanghai has reached its localization supply chain goal. During the Q2 2020 earnings call, Elon Musk estimated that Giga Shanghai’s supply chain would reach around 80% localization by the end of 2020. The recent prices released for the Tesla China’s Model Y may reflect the localization of Gigafactory Shanghai’s supply chain.
Also interesting in Tesla China’s update is Giga Shanghai’s Model Y default paint option. Unlike its US-made counterpart, black is the China-made Model Y’s default paint color. This was Tesla’s default color with the Model 3 before the company shifted to the now-standard Pearl White Multi-Coat that is available on Fremont-made vehicles today.
With its updated pricing, the Made-in-China Model Y will be priced far more competitively against local competition like the NIO ES6 and EC6. Other carmakers that are looking to tap into the same premium segment as Tesla are likely see some pressure from the American electric car maker as well.
While the recent price updates on the Model Y may seem drastic, EV advocates have noted that the all-electric crossover’s initially-announced pricing were already speculated to be inflated, likely as a means to avoid the vehicle eating into the sales of the Made-in-China Model 3. With Gigafactory Shanghai now ready for Model Y production, however, it appears that Tesla China is now ready for a full-on assault on the country’s premium all-electric crossover market.
Tesla China has also announced that it expects Model Y customer deliveries to begin this month, as noted in a report from Reuters. This is roughly one year since the electric car maker started customer deliveries of the Made-in-China Model 3.