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Deliveries from the Shanghai Giga factory are to begin in September and the price is expected to start at 200k yuan (27,400 USD)
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To ensure production capacity, the phase 1 battery line at Tesla's Shanghai factory, which had previously been shut down, is scheduled to resume production in September, according to local media.
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Tesla is in the final stages of producing display vehicles that will be shipped to Tesla showrooms later in August, with mass production expected to begin in September, according to Bloomberg.
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Tesla's revamped Model 3 is expected to go on sale in China within half a month, with some stores already accepting reservations from consumers for the new model, according to local media.
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Prototypes of the revamped Model 3 are currently being tested on the road at Tesla's Shanghai factory over weekends, with the production line doing further refinement work, according to local media.
(Image: Screenshot from a Tesla China video.)
At Tesla's (NASDAQ: TSLA) Shanghai plant, the Model 3's production workshop is currently under a high level of secrecy, but production line tuning is almost complete, local media Jiemian said today, citing an employee of a third-party supplier working at the plant.
Prototypes of the revamped Model 3 are currently being tested on the plant's roads over weekends, with the production line doing further refinement work, the employee said.
Tesla is planning to launch an updated Model 3 to compete more favorably with local Chinese car companies, the report said.
One of Tesla CEO Elon Musk's key trips to China previously was to visit Tesla's Shanghai factory to inspect the new Model 3, the report said.
Musk visited China in late May and toured the Tesla Shanghai factory, which is Tesla's largest factory in the world, producing the Model 3 and Model Y with a current annual capacity of more than 1 million vehicles.
On March 1, Reuters reported that Tesla was working to retool its Shanghai assembly plant for a revamped version of the Model 3, a project codenamed Highland by Tesla.
The Highland version of the Model 3 is expected to go into production in Shanghai in September, the Reuters report said, citing a person familiar with the matter.
With Highland, Tesla aims to cut production costs and boost the appeal of the electric sedan, which debuts in 2017, people involved in the project said, according to the previous Reuters report.
On May 16, Bloomberg reported, citing people familiar with the matter, that Tesla was nearing the final stages before starting trial production of its revamped Model 3 sedan in Shanghai.
The revamped Model 3 is slightly longer, sportier and has a sleeker interior design than earlier versions, those people said, according to the report.
Earlier today, Bloomberg reported that Tesla is laying off some battery production workers at its Shanghai plant, amid steep discounts on cars from all manufacturers.
Earlier this week, Tesla began notifying some employees on the battery assembly line at the first phase of its plant in Shanghai about the layoffs, the report said.
Jiemian's report today said two Tesla factory floor employees in Shanghai confirmed the information, but they were not sure of the percentage of layoffs.
Yesterday, local media outlet Shifang Zhixing reported that the layoffs on Tesla's battery assembly line in phase 1 would exceed 50 percent.
The layoffs are partly due to the US government's ban on subsidies for batteries imported from China, requiring local car companies to use US-made batteries, the report said, citing an insider.
Jiemian's report today cited a person familiar with the matter as saying that the batteries made at Tesla's Shanghai plant are for domestic models and not for North America.
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Tesla sold 93,680 China-made vehicles in June, including exports, the second-highest number on record after November 2022's 100,291 vehicles.
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Tesla (NASDAQ: TSLA) has increased referral incentives in China for the Model 3 and Model Y to boost sales of the two locally produced models.
Starting July 7, Tesla owners who refer others to buy the Model 3 and Model Y will receive an upgraded benefits package, the US electric vehicle (EV) maker said today on Weibo.
The package includes a RMB 3,500 ($410) cash bonus for the purchaser, which can be used against the purchase price, and a free 90-day trial of Enhanced Autopilot (EAP) assisted driving software.
Referrals will be rewarded with 7,000 points that can be redeemed for gifts including a TeslaMic, Model Y for toddlers, or supercharging miles.
Tesla has previously run an owner referral program in China for several years, which offers 1,500 kilometers of free supercharging for both the referrer and the purchaser.
The referral program was discontinued on September 18, 2021, and reinstated on October 24, 2022, but only offered bonus points.
The upgrade to the referral bonus for the Model 3 and Model Y comes on the heels of Tesla's July 1 announcement of an RMB 35,000 to RMB 45,000 discount for the full line of Model S and Model X in China.
The Model S and Model X are not produced in China, and their deliveries here began in late March.
Tesla was also encouraging owners to recommend friends to buy the two models. If a customer buy the Model S and Model X on someone else's referral, they would receive an additional RMB 7,000 bonus, free supercharging benefits for three or six years, and 90 days of free EAP benefits. The referrer will then receive a 48,000-point bonus that can be redeemed for supercharger miles.
Tesla sold 93,680 China-made vehicles in June, including exports, the second highest on record after 100,291 in November 2022, according to data released by the China Passenger Car Association (CPCA) on July 4.
That's up 18.72 percent from 78,906 units a year ago and up 20.57 percent from 77,695 units in May.
Tesla's June sales in China and the breakdown of China-made vehicles exported are expected to be known in the coming days.
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Tesla offers up to $6,200 discounts for Model S and Model X in China
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Tesla's revamped China-made Model 3 will use CATL's new M3P lithium iron phosphate battery, with the base model battery pack capacity upgraded from 60 kWh to 66 kWh, according to 36kr.
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Tesla's revamped China-made Model 3 will have upgraded battery packs, and the rear-wheel drive base model will use CATL's new M3P lithium iron phosphate battery, with capacity upgraded from 60 kWh to 66kWh, local media 36kr reported today.
Tesla has a practice of upgrading its batteries with every facelift, previously, the standard range version of the China-made Model 3 has been upgraded from 55 kWh to 60 kWh, the report noted.
The 66-kWh pack is not only available for the upgraded Model 3, but can also be used in future revisions of the Model Y, the report said, citing sources.
The range of the China-made Model 3 rear-drive version is currently 556 kilometers. The range of the facelifted Model 3 is expected to increase after receiving a 6-kWh boost in battery capacity, the report said.
The revamped Model 3, with the project code name Highland, is expected to launch in the third quarter, the report said, citing industry chain sources.
Tesla has a factory in Shanghai that produces the Model 3 and Model Y, with an annual capacity of about 1.1 million vehicles, making it the largest Tesla factory in the world.
On March 1, Reuters reported that Tesla was working to retool its Shanghai plant for a Model 3 facelift, a project codenamed Highland by Tesla.
The Highland version of the Model 3 is expected to go into production in Shanghai in September, the Reuters report said, citing a person familiar with the matter.
With Highland, Tesla aims to cut production costs and boost the appeal of the electric sedan, which debuted in 2017, people involved in the project said.
In addition to the Highland version of the Model 3, the Reuters report also mentioned that Tesla was preparing to make production changes to the Model Y.
The changes to the Model Y -- which Tesla has codenamed Project Juniper -- involve the exterior and interior of the SUV, with the goal of starting production in 2024, according to Reuters.
On May 16, Bloomberg reported that Tesla was nearing the final stages before starting trial production of its revamped Model 3 sedan in Shanghai.
The revamped Model 3 is slightly longer, sportier and has a sleeker interior design than earlier versions, according to the report.
On the battery front, it's worth noting that there were rumors last August that CATL would supply M3P batteries to Tesla.
CATL will begin supplying M3P batteries to Tesla in the fourth quarter, and will put them in Model Y using 72 kWh packs, local media outlet LatePost reported on August 3, 2022.
The lithium manganese iron phosphate (LMFP) material used in CATL's M3P battery will be supplied by Shenzhen Dynanonic Co, which had plans to put 110,000 tons of LMFP material into production in the second half of 2022, according to the report.
Tesla was also developing LMFP batteries, but with a long development cycle, it will first source such batteries from suppliers, the report said.
LMFP batteries are an improvement on lithium iron phosphate (LFP) batteries.
Batteries are usually named after the cathode materials they use. LMFP cathode materials can be made by adding manganese to the LFP cathode materials currently used to make LMFP batteries.
The LMFP route can be divided into two types, using 100 percent LMFP material as the cathode or doping the LMFP material with other materials such as aluminum or magnesium to make the cathode.
CATL's M3P batteries' cathode materials are doped with lithium ternary materials and LMFP materials, a solution that solves the problem of short cycle life and high internal resistance of LMFP batteries, as noted in the LatePost report.
On August 18, 2022, Sina Tech cited two people familiar with the matter as saying that Tesla would soon launch a new China-made Model 3, with the biggest highlight being that the entire lineup will use M3P batteries supplied by CATL, with a range improvement of at least 10 percent.
With the new battery pack, the two versions of the China-made Model 3 are expected to have a range of more than 600 km and 700 km, up from the previous 556 km to 675 km, the report said.
Tesla starts offering insurance subsidies for car purchases in China again
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From June 16 to June 30, Chinese consumers can receive an RMB 8,000 insurance subsidy if they purchase a rear-wheel drive version of the Model 3 that has already been produced.
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Tesla (NASDAQ: TSLA) first started offering insurance subsidies in China last September, and cut its prices about a month later.
Now the electric vehicle (EV) maker is offering the subsidy again, but this time the situation may be more complicated.
From June 16 to June 30, Chinese consumers who buy and complete delivery of an already produced rear-wheel drive version of the Model 3 will be eligible for an insurance subsidy of RMB 8,000 ($1,120), according to a poster by Tesla on Weibo today.
Tesla has a factory in Shanghai that produces the Model 3 sedan and the Model Y SUV. The Model 3 is available in two versions -- a rear-wheel drive version and a dual-motor all-wheel drive Model 3 Performance, starting at RMB 231,900 and RMB 331,900 respectively.
For customized vehicles, the expected delivery dates for both versions of the Model 3 are 1-4 weeks, consistent with previous information on Tesla's China website.
In addition to the RMB 8,000 insurance subsidy, Chinese consumers who purchase the Model 3 rear-wheel drive version in stock now can also receive a loan option with a lower interest rate, Tesla's poster shows, without providing details.
On September 16, 2022, Tesla began offering subsidies for owners to purchase vehicle insurance in China after the wait times for Model 3 and Model Y custom vehicles saw multiple reductions in the previous two months.
At that time, the subsidy was valid from September 16 to September 30, and consumers who chose to purchase insurance in a Tesla store could receive a subsidy of RMB 8,000 for new Model 3 and Model Y vehicles.
On October 1, 2022, as the subsidy expired, Tesla extended it to the end of last year.
On October 24, 2022, Tesla cut the prices of the entire Model 3 and Model Y lineup in China, with the entry-level Model Y dropping below RMB 300,000 to take advantage of the then-available state subsidy.
It is worth noting that the latest move by Tesla may involve the upcoming launch of an improved version of the model.
On March 1, Reuters reported that Tesla was working to retool its Shanghai assembly plant for a revamped version of the Model 3, a project codenamed Highland by Tesla.
The Highland version of the Model 3 is expected to go into production in Shanghai in September, the Reuters report said, citing a person familiar with the matter.
With Highland, Tesla aims to cut production costs and boost the appeal of the electric sedan, which debuts in 2017, people involved in the project said.
On May 16, a Bloomberg report cited people familiar with the matter as saying that Tesla was nearing the final stages before starting trial production of its updated Model 3 sedan in Shanghai.
Tesla sold 42,508 units at retail in China in May, ranking third in the country's new energy vehicle market with a 7.3 percent share, according to data released by the China Passenger Car Association (CPCA) on June 9.
Model 3 retail sales in China in May were 11,454 units, up 189.97 percent year-on-year, but down 13.20 percent from April.
Model Y retail sales in China in May were 31,054 units, up 428.58 percent year-on-year and up 16.05 percent from April.
The Model Y was the best-selling SUV in China in May, ahead of the second-place BYD Yuan Plus with 26,072 units and the third-place BYD Song Plus with 22,079 units.
Tesla Model Y best-selling SUV in China in May with 31,054 units sold
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From January to May, the Model Y sold 152,461 units at retail in China, up 87.03 percent year-on-year, and was also the best-selling SUV in China during the period.
Tesla's (NASDAQ: TSLA) Model Y was again the best-selling SUV in China in May, with the Model 3 also doing well in a sedan ranking.
Model Y retail sales in China in May were 31,054 units, up 428.58 percent year-on-year and up 16.05 percent from April, according to a ranking released yesterday by the China Passenger Car Association (CPCA).
This makes the Model Y the best-selling SUV in China in May, ahead of the second-place BYD Yuan Plus with 26,072 units and the third-place BYD Song Plus with 22,079 units.
It is worth noting that the BYD Song family was considered as one model in the CPCA's previous rankings. The family includes the Dynasty Series Song Pro and Song Max, as well as the Ocean Series Song Plus.
Song Pro retail sales in May were 13,501 units, placing it at No. 9 in the ranking.
From January to May, Model Y retail sales in China were 152,461 units, up 87.03 percent year-on-year, making it the best-selling SUV in China during this period.
The BYD Song Plus ranked second with 149,485 units in January-May, and the BYD Yuan Plus ranked third with 117,531 units.
Model 3 retail sales in China in May were 11,454 units, up 189.97 percent year-on-year, but down 13.20 percent from April.
The Tesla sedan did not make the top 20 list of best-selling sedans in May, with the 20th place on the list being the Mercedes-Benz C-Class at 11,929 units.
The Model 3 was fifth on the list of premium sedan sales in May. The Mercedes-Benz E-Class was No. 1 with 14,600 units, the BMW 3 Series was No. 2 with 14,009 units and the Audi A6L was No. 3 with 13,154 units.
From January to May, Model 3 retail sales in China were 67,432 units, up 76.89 percent year-on-year, making it the best-selling premium sedan during this period.
The Audi A6L ranked second with 64,272 units from January to May, and the Mercedes-Benz E-Class ranked third with 61,244 units.
Tesla has a factory in Shanghai that produces the Model 3 and Model Y. Their combined retail sales in China in May were 42,508 units, ranking third in China's NEV market with a 7.3 percent share, according to data released by the CPCA on June 9.
Tesla's Shanghai plant exported 35,187 vehicles in May, up 57.51 percent year-on-year, but down 1.95 percent from April, data monitored by CnEVPost showed.
Tesla delivers 42,508 vehicles in China in May, taking 7.3% share of NEV market
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The revamped Model 3 is slightly longer and sportier than earlier versions and has a sleeker interior design, according to Bloomberg.
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Tesla is nearing the final stages before starting trial production of its revamped Model 3 sedan in Shanghai, a Bloomberg report today said, citing people familiar with the matter.
The revised Model 3 is slightly longer, sportier and has a sleeker interior design than earlier versions, the people said, according to the report.
Since the beginning of this month, some production staff at Tesla's Shanghai plant have been asked to keep their phones in special lockers outside the factory's production line to prevent potential photo leaks, one of the people said.
Production lines in the first phase of the factory could be shut down for a few days at the end of the month for adjustments, though those plans could still change, the report said.
On March 1, Reuters reported that Tesla had been working to retool its Shanghai assembly plant for a revamped version of the Model 3, a project codenamed Highland by Tesla.
The Highland version of the Model 3 is expected to go into production in Shanghai in September, the Reuters report said, citing a person familiar with the matter.
With the Highland, Tesla aims to cut production costs and boost the appeal of the electric sedan, which debuts in 2017, people involved in the project said.
Appearance and powertrain performance will also be changed, with a focus on production efficiency, they said, according to the report.
Giga Shanghai is Tesla's largest plant in the world, producing the Model 3 and Model Y, with an annual capacity of about 1.1 million vehicles.
Tesla sold 75,842 China-made vehicles in April, including 35,886 units exported, according to the China Passenger Car Association (CPCA).
Model 3 sales in China in April were 13,196 units, up 2,290.58 percent from 552 units in the same month last year, but down 39.26 percent from 21,726 units in March.
Model Y sales in China in April were 26,760 units, up 2,687.50 percent from 960 units in the same month last year, but down 51.29 percent from 54,937 units in March.
This is due to the fact that Tesla's sales in China fell sharply last April due to the Covid lockdown in Shanghai, and its pattern of producing vehicles primarily for export in the first half of each monthly quarter.
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