Tesla’s Progress In China Surges Forward On All Fronts

Tesla Model 3 (Source: China AutoReview)

MAR 8 2019 BY EVANNEX 26

TESLA’S FUNDING IS SECURED IN CHINA AS PROGRESS CONTINUES AT A RAPID CLIP IN THE REGION

The Tesla Model 3 scene in China is as newsworthy as it is in Europe right now. The country’s rising middle class could create significant traction for Tesla according to a report in China’s Global Times. It’s reported that, “test drives are in hot demand at Tesla showrooms… customers have shown great enthusiasm for the Model 3, just like they did almost one decade ago when the iPhone 4 made its debut in China.”

*This article comes to us courtesy of EVANNEX (which also makes aftermarket Tesla accessories). Authored by Iqtidar Ali. The opinions expressed in these articles are not necessarily our own at InsideEVs.

Red and Blue Tesla Model 3 at the Goldenport Race Circuit in Beijing, China

Above: Tesla Model 3 deliveries have accelerated in China (Photos: JayinShanghai)

Tesla is currently offering three variants of the Model 3 in China (Dual Motor Long Range, RWD Long Range, and the Dual Motor Performance) which all remain more expensive than the mid-range Model 3 available in North America. That said, more than 10,000 cars are reported to be reserved according to native sources.

Above: Tesla’s innovative home delivery model in China (Above: Vincent Yu)

Meanwhile, the Wall Street Journal reports, “The electric-car maker said in a securities filing Thursday that a syndicate of lenders agreed to provide up to 3.5 billion yuan ($521 million) for construction and production expenses at its so-called Gigafactory Shanghai. Tesla’s lenders in the agreement are China Construction Bank Corp., Agricultural Bank of China Ltd., Industrial and Commercial Bank of China Ltd., and Shanghai Pudong Development Bank Co.

Above: Tesla’s progress at the Gigafactory 3 in China (Youtube: 烏瓦)

And Reuters reports, “Tesla’s upcoming vehicle assembly facility in Shanghai is expected to be completed in May this year [according to] a Shanghai city government official… adding that part of the facility’s production line would be put into operation by the end of the year.”

Above: Tesla Model 3 deliveries in China (Youtube: CHINA LIVE)

To kick things off in the market, the first Tesla Model 3 vehicles were recently handed over to select Chinese customers in Shanghai in a recent splashy event. Robin Ren, VP of Global Tesla Sales who reportedly has millions of followers on Chinese social media, along with other Tesla influencers and enthusiasts got their Model 3s delivered.

First Tesla Model 3 customers received their cars in China
Robin Ren giving Tesla China customers a presentation on the Model 3
The Tesla Model 3 gang at the Goldenport Race Circuit in Beijing, China

Above: Initial Tesla Model 3 deliveries to Chinese owners and a slew of Model 3s reach the Goldenport race circuit Beijing (Photos: JayinShanghai)

At the Shanghai Port, according to sources (JayinShanghai/Vincent Yu), the total number of Tesla Model 3 in the vehicle transport vessel (see below) was ~1600 units — Tesla Model S and Model X were also part of this initial shipment to China.

Above: Tesla’s shipment arrives at the Port of Shanghai (Youtube: Vincent Yu)

That said, there have been some recent hiccups with customs that appear to be resolved now. In addition, there’s been understandable blowback from recent customers in China due to Tesla’s recent price cuts in the region.

Nevertheless, with Tesla’s price cuts, demand in China in 2020 is likely to accelerate. Observer Kevin Yang remarked (via Twitter) that news of local price cuts have been trending on Weibo and he remarks, “… ~100 million Chinese know about Tesla cuts [to the] price and foreseeably some will be ordering.” And looking ahead, the base price Model 3, built at its Shanghai Gigafactory, is now slated for the region and the company’s Model Y standard variant will also be built in China according to Elon Musk.

===

Written by: Iqtidar Ali; An earlier version of this article appeared on X Auto.

*InsideEVs Editor’s Note: EVANNEX, which also sells aftermarket gear for Teslas, has kindly allowed us to share some of its content with our readers, free of charge. Our thanks go out to EVANNEX. Check out the site here.

Categories: Tesla

Tags: , ,

Leave a Reply

26 Comments on "Tesla’s Progress In China Surges Forward On All Fronts"

newest oldest most voted

Lol $512 million for a $2 billion factory. Where is the rest of the money? That will pay for construction but equipment tooling and training getting it online will cost way more. Maybe it will close a pla t in the US and move manufacturing to China and just move the equipment.

If you ever build a house, you’d know that the bank will not lend you the whole building cost from start. They will give you an amount up front, to start the building and will give you the rest at precise steps.

But I wager you don’t care for facts, so..

Yes in China no in Russia, Sorry troll.

Tesla surges forward with progress in China. And just released V3 of the Supercharger. And just released the $35k Model 3. And is unveiling the Model Y in 6 days. And just announced that within a couple weeks all existing Superchargers would get a bump in charging speed.

Meanwhile, the financial media announced that Tesla’s pretty much done. News outlets don’t really give specifics, but use the words, “maybe, possibly, and potentially” regularly as their smoking gun. Maybe Tesla’s the last to know, as it appears they’re continuing forward with their plans.

It’s the media’s job to ignore all the warts and only report on the good, right?

Nope. It’s the media’s job (allegedly) to report on ALL news, good and bad. If you own an iphone, go read the majority of substance-less article headlines right now, yesterday, the last month, etc. The vast majority focus on the negative, and have been ever increasing the last 6 month+, longer actually. And honestly bro1999, I wouldn’t expect you to outwardly acknowledge it, for obvious reasons. You and I discussing merits of Tesla is pretty much pointless.

But hey, here we are on a Friday, right?

Oh, Yahoo Finance and Seeking Alpha also HATE Tesla with a passion, too. If you read the Tesla related headlines at those outlets and feel otherwise, then we’ll simply have to agree to disagree.

The other day you complained about an article that in your opinion wasn’t properly marked as an Evannex article tricking you into clicking it, and now I find you trolling on an Evannex article? You’re such a liar.

Chris O- you beat me to it. Unfortunately, bro1999 has gone dark (like he’s wont to do when out-compelled) so I couldn’t point that out to him in response.

I’m sure his whole life is pretty dark. I guess one doesn’t even want to know what lurks behind some of those screen names.

sure, why not? It appears that you and the other shorters are going to report on ‘warts’, real or not.

Unfortunately the media has found that negative stories get more interest, which drives more eyes to the advertising, driving more income for them. Write a bad news article – make lots of money. Write a good news article – (yawn) nobody cares.

That makes sense.

Good time to buy the stock…

I just got some money from the states, however my bank here in Canada has put a hold on the check till they clear it.

So I need the FUD master to continues spew falsehoods and keep driving the stock down. If I am lucky they will drive the stock down to $250 a share and I can buy a number of shares as soon as the check clears.

So go FUD Spreaders, make me lots of money with your stupids ideas.

Serious question: How far into an article do you have to get before your spidey sense whispers “EVANNEX”? This one triggered for me in the title…

I saw Evannex and then just skimmed from there.

No need to troll, it said clearly on the main page that this is an Evannex article, if you don’t like it you should have skipped it.

Or download Fox app

Actually, you need to keep up with Fox News IF you want to know your enemy. 😉

NPR radio recently did a revealing interview with Jane Mayer about this: https://www.newyorker.com/magazine/2019/03/11/the-making-of-the-fox-news-white-house

Take it for what it’s worth…

Tesla in Q1.

– model 3 expansion to Europe with deliveries AHEAD of schedule.
– model 3 expansion to China with deliveries a full month AHEAD of schedule
-maintaining 7500/wk sustained model 3 production.
-Domestic release of the $35,000 model to a backlog of hundreds of thousands of reservation holders. (who also realize the $3750 ends July 1st.) Now the same price as a moderately optioned Camry or Accord.
-Y unveil (and you KNOW this is going to be another complete smack down to ICE)
-Supercharger times reduced to 15-20 mins.
– Chinese Gigafactory ground work progressing nicely to keep schedule.
-completely online with sales. (Amazon box store disruption now invades the dealership model)

It looks pretty good to me.

Another Euro point of view
OK, I will do the investor’s point of view for you: 1) Who has set this schedule ? The Model 3 is supposed to be mass produced since summer 2017. 2) Same as above. 3) So that means 90K Model 3 produced + say 25K Model S+X produced for Q1 2019. 115K in total. Hopefully deliveries of at least 90-100K in Q1 2019 right ? We will see about that in about 6 weeks from now. 4) Good news only if that triggers profits. Considering that Tesla only made a tiny profit selling 90K high priced Tesla’s in Q4 2018, logically lot’s of people are scratching their heads on that one. People not scratching their heads are usually the one not having one to start with. 5) Y unveil – only relevant if Tesla has access to the funds that will make production possible. Selling USD 35K Model 3 WILL NOT fund anything except maybe the electricity bills. 6) Supercharger times reduced to 15-20 mins – good as long as funding for deployment is available. 7) Chinese Gigafactory ground work progressing nicely to keep schedule. If a Chinese bank is funding Tesla operations in China it just means that the… Read more »

Profits are not that meaningful in this case, without looking at how much is cost of sales vs capital expenditure. If Tesla quit innovating right now and just pumped out model 3’s they would show great profits, but thats dumb right? So they keep taking money and investing in the Y, in the truck, in the semi, in production expansion. Whatever your feelings on ICE vs Electric are, Tesla has a great product that people want to buy. That is a formula that regularly results in profitable businesses.

We can see why A-Euro doesn’t run a (successful anyways) company.

Keep shorting troll!

Yeah, but did you know that Elon Musk took two puffs from a joint on Joe Rogan’s podcast??? (about 6 months ago) Now THAT’S what we should focus on.

Eventually how will Tesla return profits back to shareholders ?