Chinese consumers reportedly are not satisfied with the announced price of the locally made Model 3

Work at the Tesla Gigafactory 3 in Shanghai (as of June 9, 2019) continues. The main production building however still needs to be finished. The concrete mixer trucks at the entrances suggest laying floors inside.

The most interesting comment in the video and description is about the consumer's reaction on the Tesla Model 3 prices of 328,000 yuan ($47,468), some 49,000 yuan cheaper than the imported version.

The difference turns out to be too low to make consumers happy. Those interested in the base Model 3 will very likely stay with the imported one, considered as higher quality and maybe also slightly better equipped.

We can't see it as a problem for now, because initial local production will be low anyway and Tesla probably will lower the prices of the Chinese-made Model 3 later to balance the supply and demand.

Video Description via 烏瓦 on YouTube:

Tesla gigafactory 3 in Shanghai \Entering June特斯拉上海超级工厂

It has been half a year since the construction of Tesla's Shanghai super factory. Although it was not as previously announced by the media, the construction of the first phase of the project was completed in May, but it was basically close to completion. On the last day of May, Tesla China official website released the price of China-made Molde3, which is much higher than the price expected by Chinese people. Many consumers who are ready to order Tesla's native Modle 3 are consumers. Instead, they ordered the imported version, because they only differed by 50,000 yuan, and the imported version of the order, will also give the automatic driving function, and in the hearts of Chinese consumers, the imported version may be better than the just produced Modle 3 Chinese native products. Some netizens pointed out that the Chinese version of Modle3 is so expensive that it may be to some extent alleviate the consequences of the Sino-US trade war. If the two countries continue the cold war, it is possible that at the end of this year, Tesla Modle 3 The first car could not go offline, not to mention the first Modle3 that was reported off the media in late September. In any case, Tesla, who entered the Chinese market for the first time, seems to have not been very successful in the second half of the year. However, from the Tesla site in Shanghai, we are still working steadily.

Here is also a second video from Jason Yang:

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Tesla Gigafactory 3 facts:

  • location: Shanghai, China
  • wholly-owned subsidiary (not joint venture)
  • construction was started in January 2019
  • initial construction should be completed by the end of summer
  • production of cars should start in second-half of 2019 (volume production from 2020)
  • initial target of 3,000 cars per week (between 1,000 to 2,000 per week by the end of 2019)
  • expected total investment: about $2 billion
  • purpose: production of affordable versions of Model 3/Model Y for greater China region (higher cost versions of 3/Y and all S/X to be produced in the U.S.)
  • battery packs will be assembled using lithium-ion cells from various suppliers, including Panasonic
  • expected volume: 500,000 per year