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A new version of the Tesla Model 3 built in China will be ready in just a few days. This is a milestone achievement for the Tesla company.
Tesla will begin deliveries for the company’s first-ever Tesla Model 3 vehicles produced in China. According to a Reuters report, a Tesla representative confirmed that the company will begin on Tuesday the 7th of January. Deliveries will happen during an event that will take place at the Tesla factory in Shanghai.
For a while now, the company has been making specific efforts to bite a bigger share of the global auto market. Apart from this, Tesla’s move is a direct way to fend off the effects of the trade war between the U.S. and China. Before now, Tesla has had to ship the vehicles from the U.S. to China, incurring several additional costs. The Shanghai plant helps the company to circumvent tariffs between the two countries.
Apart from tariffs, Tesla is also very interested in the Chinese auto market, While Tesla is still easily the largest maker of electric vehicles (EV) in the world, there is a growing list of competitors in China. Fortunately for Tesla, sales for these other vehicles have not been great. One of the major reasons for this is that subsidies generously offered by the government have been reversed. This has allowed Tesla to exert dominance.
The New Tesla Model 3 In China
China’s Model 3 will be a little different. Firstly, the versions produced in Fremont, California, and Sparks, Nevada, are more costly. The company says this second-generation Model 3 will be at least half the price of the older versions. Generally, features on the new Model 3 might be somewhat reduced to accommodate the relatively low price.
Tesla’s China Factory
Back in October, Coinspeaker reported that Tesla struck an interesting deal with the Chinese government. For the first time ever, China allowed a fully-owned foreign company to establish a factory on its soil. Usually, foreign companies who want to set up shop in China would have to enter a partnership with a local company. Recent reports, however, have it that Chinese President Xi Jinping is open to changing this rule. This means that other foreign companies would also easily enter the Chinese market without a local partnership.
China in recent times has been very deliberate about making moves to boost its economy. The country is also making these moves to reduce its dependence on the U.S. and the dollar to its barest minimum. In a note to its shareholders, Tesla announced plans to start factory operations by the end of 2019. Today, the factory can produce an average of 150,000 Model 3 units per year.
Tesla Stock (TSLA)
In recent times, market strategists and analysts have become a lot more bullish on TSLA. The company’s recent Cybertruck which initially didn’t please the public turned around swiftly. Also, a look at the company’s books show that there is significant and consistent progress with its figures. Today, most of the market is positive on TSLA.
At the moment, TSLA is trading at $430.26.