China Is Second To Only U.S. In Tesla Model 3 Pre-Orders

1 year ago by Mark Kane 16

Tesla Model 3 Is Expected To Launch In Late 2017

Tesla Model 3

The Tesla Model 3

Tesla Model 3

The second largest market for Tesla Model 3 – after the U.S. – seems to be China.

At least that would be indicated by the second largest number of pre-orders (the deposit total currently stands at some 400,000), but the exact figure from China was still not revealed.

Tesla’s global vice-president Robin Ren said:

“The potential is huge, and Tesla is fully committed to developing the Chinese market.”

China turns to be also the 2nd largest market in case of Model S, but according to the article, in 2015 revenues decreased 33% to $319 million.

In China, the Model 3 is not likely to appear earlier than 2018.

Some analysts still  have doubts in Model 3 ultimate success there, as Zhang Yu, an analyst at consultancy firm Automotive Foresight said:

“As the infrastructure for new-energy vehicles (NEVs) is not mature enough, customers will prefer cheaper models. Although Model 3 is claimed to be an affordable one, the price is still too high,”

“It may manage to draw people’s attention, but Model 3 won’t be able to be a game-changer in the Chinese market,”

source: South China Morning Post

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16 responses to "China Is Second To Only U.S. In Tesla Model 3 Pre-Orders"

  1. turboro says:

    Model 3 gets only a success when produced (mainly) locally. In addition the price may still be too high, where locals like BYD will get better by 2018 as well.

    1. Rob Stark says:

      Tesla will still be better than BYD by a wide margin in 2018,2019 and 2020.

      In an auto market over 18M units both BYD and Tesla will sell every unit they can deliver.

      Tesla Model 3 and Model Y will be a smashing success in China but only command a sliver of the overall market because Tesla can only grow so fast.

      1. LOL says:

        BYD’s main focus is on e-buses and recently e-trucks T5 T7 , not much in competition with Tesla. BYD trucks could be quite a success in US, provided that Momentum Dynamics keeps on its promise of launching 200 kW wireless charger. As for the Tesla Model Y, should it be a small CUV in a class of Renault Captur and Peugeot 2008, it could be a smashing success not only in China, but in Europe as well, given both of models are selling well north of 100k per year. Maybe Tesla will succeed in pleasing all tastes, and on M3 platform deliver small pickup truck for US, small CUV for Europe and let Chinese choose on their own. In all scenarios wireless charging would further speed up the EV’s wider adoption.

  2. Speculawyer says:

    Wow. Although I suspect many of those are speculators. China has rampant speculation in all sorts of things . . . apartments, stocks, commodities, etc. They don’t have the ability to invest in many different things so they invest in the few things they can.

    1. Rob Stark says:

      What can’t Chinese invest in that leaves a large pool of capital to invest in speculation of real goods?

      1. Pushmi-Pullyu says:

        I don’t know how true it is, but according to at least one news report I’ve seen in the Western media, the reason China has so many “ghost cities”, gigantic collections of huge apartment buildings with nobody living in them, is because there are so few markets where the Chinese can invest money without restriction. Real estate development is one of those few places.

        However, this may be a round-eyed oversimplification of the true situation. We should always take foreign coverage of what’s happening behind the “Bamboo Curtain” with several grains of salt.

        http://fortune.com/2016/02/10/china-housing-market-mortgage-down-payment/

  3. Or looking it the other way around: interest in Europe is mild.

    1. Rob Stark says:

      If European deposits ~10x BMW i3 2015 European sales are mild. LOL

    2. Mikael says:

      There are about 50 countries in Europe. Cumulative reservations are most definitely a lot higher than the Chinese reservations.

      Would be interesting to see country specific reservations number though.

  4. Pushmi-Pullyu says:

    So, a big raspberry to all the self-appointed experts who claimed that the back seat of the Model S is too small for the China market, and that the even smaller M≡ would never sell in substantial numbers!

    Go Tesla! …to China!

    1. Jychevyvolt says:

      The backseat on the model 3 looks bigger than the model s. The backseat is king in China.

    2. Mikael says:

      The back seat is still a big deal in China for the Model S. Both supported by real experts and well educated readers in here.

      The Model 3 though is a whole other story since its price level is down at levels where people drive their own car instead of having a driver.

  5. Seth says:

    That statement is a nice contradiction. Because you don’t have that mature infrastructure you want a EV with a bigger range as it makes you less required to have something where you go.

    Just hop by the Supercharger once or twice a week. I still need to charge my car *every* day, would be nice if it wasn’t required.

    1. LOL says:

      Some companies have figured that out, like Elixwireless Canada, and are prepping to launch a state-of-the-art wireless charging, having in mind huge orders for the Tesla M3. All what it takes to unburden our “every” day charging needs is that electricity companies simply deploy these fast wireless chargers within city perimeter, and there you go, Tesla sales soar tremendously. Wireless chargers come to the fore.

  6. Ryan H says:

    I saw more electric cars in Shanghai last week than I do on a weekly basis in Minneapolis. Geelys, BYDs, and other manufacturers I had never heard of were all over Shanghai. Additionally, there were boatloads of ICEs that would price in the ballpark of a Model 3 as new. This idea of China only having a demand for stately mega-saloons is an absurd notion of people who have only visited the posh neighborhoods of Hong Kong.