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Tesla Will Soon Stop Shipments of the Standard Range Model 3 to China

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【Summary】As Tesla's Shanghai Gigafactory readies for production, the automaker informed its Chinese customers that they won’t be able to order a U.S-made Model 3 Standard Range after Oct 13.

Manish Kharinta    Oct 06, 2019 11:15 AM PT
Tesla Will Soon Stop Shipments of the Standard Range Model 3 to China

Earlier this year, we reported on the rapid construction progress of Tesla's Shanghai Gigafactory and the pace continues. Recent reports coming out of China indicate that the Shanghai production facility is almost production-ready.

This bodes well for the American automaker, as the threat of higher tariffs looms over the auto industry. Tesla is aiming to start production of the Model 3 in China later this month.

The Gigafactory 3 was established to build the electric Model 3 for the Chinese auto market, the world's biggest. Tesla's initial target for production volume at the Shanghai factory stands at 1,000 to 2,000 units per week. 

It's still unclear whether or not the production facility will be able to meet Tesla's aggressive volume target this early on, but recent communications between the company and the Chinese Tesla community indicates that the facility is almost ready to begin production. 

Tesla informed its Chinese customers that they won't be able to order a U.S-made Model 3 Standard Range after Oct 13. 

Customers have also been advised to schedule their test drives and place orders for the last U.S.-made Tesla Model 3s before Oct 7. The announcement was made via the company's official social media platforms run by Tesla's China team.

For Chinsese customers looking to get their hands on one of the first-ever made-in-China Tesla Model 3, they might want to put in their orders in as soon as possible. Tesla may offer incentives to get customers to place their orders by Oct 13. 

Tesla managed to report respectable sales numbers in China, even though automotive sales in the American market struggled last month with mainstream automakers Nissan, Toyota and Honda reporting around a 15% decline in year-on-year sales.

We expect that Tesla's sales in the Chinese market will improve even further as the cost of China-made Model 3s would not have to account for import tariffs that were imposed on the U.S-made versions. 

Unless a trade deal is worked out between the Trump administration and Beijing, the tariff on U.S. made autos will rise an additional 25% to 40% on Dec 15, so U.S.-made Tesla models such as the Model S and Model X will cost much more.

The Chinese government has also offered Tesla a local sales tax waiver that will help customers save around 10% on the total cost of their Model 3.

Tesla Model 3 Standard Range variant offers 240 miles of all-electric driving range and can accelerate from 0 to 60 mph in 5.3 seconds. Top speed of the rear-wheel-drive, single motor Model 3 is 140 mph.

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