Tesla’s Shanghai factory is reportedly set to produce a new variant of the Model Y next year. The battle for the Chinese market continues.
• Tesla factory in Shanghai to produce new Model Y
• Chinese market competitive
• Musk reaffirms ties with China
New Model Y from Shanghai
As the news agency “Bloomberg” reports, the electric car manufacturer Tesla is preparing a revised model of the successful Model Y from its factory in Shanghai. Mass production should therefore possibly begin from mid-2024. More precise sources cannot be named as this is not official information. According to the sources, the new version will have significant external and internal changes and will be an evolution of the last update.
Competition to BYD
The Shanghai production facility is of immense importance for Tesla. According to Bloomberg, the Shanghai factory produces more than half of Tesla’s global supplies. The Tesla Model Y is very popular in China, according to data from Bloomberg, Model Y deliveries account for 75 percent of Tesla’s total deliveries in China.
The Chinese market is very competitive. The Chinese electric car manufacturer BYD recently introduced a new electric SUV, Song L, in China, which is in direct competition with the Tesla Model Y and could become increasingly attractive in the aggressive Chinese price war due to its lower price.
Tesla’s Shanghai deliveries fell in 2023
After Tesla opened the price war in China, the company had to increase prices for the Model Y Long Range in November 2023. According to the portal it-times.de, the increase is due to increasing pressure in production and rising production costs. The inflation was at least effective in the short term: According to reports from BNN Bloomberg, Tesla deliveries in China rose by five percent in November compared to the previous year due to orders placed before Tesla announced its price increase at the end of October. However, overall deliveries from Tesla’s Shanghai factory fell 18 percent compared to the previous year.
Musk reaffirms ties with China
Due to its considerable dependence on Chinese suppliers and raw materials, the USA is striving to break away from China. The CHIPS and Science Act signed by President Joe Biden in 2022 aims to invest about $52 billion in domestic semiconductor production to reduce dependence on Chinese imports, according to the White House. Elon MuskHowever, who has significant economic interests in China, has a different view of relations with China. During a visit to China in June 2023 and meetings with the country’s top officials, he spoke out against US economic decoupling from China, according to the Global Times.
Editorial team finanzen.net
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