This Car Just Ended Tesla’s Future
S Tesla Model 3 and model y electric vehicles that are made in China today were looking at whether these rumors are true were also looking at. Why Tesla recently slashed its EV prices in China, whether we can expect price Cuts here in the U.S too so are the rumors? True? Will Tesla start shipping its made in China EVS to the U.S? Actually, these rumors Trace back to two unnamed people who told Reuters the Tesla had begun. Considering this plan heres the thing Tesla has a gigafactory in Shanghai that makes the model 3s and model wise. Everybody knows labor is way cheaper in China than in the US. So, in my opinion, its not impossible to one day see an American roads Teslas that are built in China right now. Tesla has a problem. The demand for Tesla EVS in China is down, and so Tesla has been discussing, studying and even testing whether or not Parts made by its Chinese suppliers comply with regulations in North America. If these parts do comply, that would mean that model Y and model 3 EVS theyre made in China can be sent to the United States for sale as early as 2023. And, if that turns out successful, there are further rumors that Tesla may do the same. For the Canadian Market, but heres the thing after Reuters published a story, Elon Musk tweeted that the report story wasnt true and when questioned other Tesla Representatives seem to confirm the same thing as musk.
Yet, even though Elon Musk said the report wasnt true, multiple analysts in the car industry cant deny the fact that importing EVS into the U.S is not as far fetched as an idea that some might think just look at the Tesla gigafactory in Shanghai. Earlier this year got an upgrade now it is the capacity produced swapping 1.1 million EVS every year that makes the Shanghai gigafactory Teslas most productive manufacturing Hub today, and the Shanghai gigafactory is a ready, exporting model 3 Model wise to Europe, southeast Asia and even Australia. Remember too, the fact that the wine is cheaper than the US Dollars and raw material prices and cost of Labor are also lower in China. Compare that to the rise in new car prices here in the U.S, and you can see why shipping from from China to the United States can be a strategic move, but lets imagine for a minute that Tesla does end up shipping its vehicles that are made in China to the United States what, then that could end up creating a new complexity for Tesla customers here in the states. After signing the Biden administrations, inflation reduction act, Tesla has been seen by many as one of the main beneficiaries of it. The IRA gives rebates of up to 7 500 bucks on EV purchases and was intended in part to get automakers to reduce their Alliance on China. Up until a few weeks ago, Teslas plan was to build the cars that sells in North America at its Factory in Austin Texas, where it makes its model Y and will soon make it.
Cyber truck and Tesla also planned to build its EVS at its Fremont. California, Factory, where it makes the model S the model 3, the model X and the model y, but all of that could change if Tesla does decide to start importing its vehicles that are made in China to the United States. If that were to happen, though it wouldnt be the first U.S automakers to do so. Gm is also imported as Buick Envision crossover, but with GM it actually tried to get an exemption from the 25 U.S Terror, but then the Trump Administration said no did you know. Tesla sells the model Y for the equivalent of 49 344 in China, thats over fifteen thousand dollars less than the sticker price here in the United States. But you cant forget the fact that vehicles that are made in China face a 27.5 percent U.S tariff and light duty trucks that are made in China face a 25 tariff. China actually imposes a 15 tariff on all its imported vehicles, but believe it or not back in 2018, before Teslas Shanghai gigafactory was up and running Elon Musk had asked then president Donald Trump to rage tariffs on cars imported to the United States and China thats, because He felt that raising the tariffs would equalize the price differences and leave both the U.S and China with equivalent and equally moderate tariffs, but thats. Not the only news about China and Tesla thats been splashed across the headlines.
In recent weeks, Tesla announced that between November 8th and December 31st 2022, it will be offering a discount of up to 1 105 on the final price of its cars that are in stock in China, and Tesla also announced that these cars will have auto insurance from One of its Insurance Partners – that was the first announcement in two years by Tesla that the company would be cutting prices on its EVS reported late. Tesla further explained that these over a thousand dollar discounts are also applicable to its show cars. Current model vehicles that are not brand new and Tesla vehicles that are used for test drives, but the discount will not apply to official Tesla certified second hand Vehicles. Now, even though Tesla announced that its discount would run from November 8th to December 31st 2022, it would actually turn out to be more advantageous for a customer if the applicable vehicle was bought in November thats, because for any customers who decide to take delivery. From December 1st to 31st, the discount would be sliced in half yeah wondering why Chester would offer one thousand one hundred five dollar discount in the first place, youre, not the only one. There are a few reasons, but really it all boils down to test. I wanted to sell more of its vehicles in China throughout this past year. There have been increase after increase on the rates of Teslas vehicles that are made in China, and partly because of that in recent months there have been an increasing concern over the softening of the demand of Tesla EVS in China.
It also hasnt been an easy year for the car industry in general, and Tesla is no exception when covid 19 came back with a vengeance earlier this year, Teslas deliveries in the second quarter took a hit, and then Tesla had to shutdown of model 3 production headline And its Fremont California Factory for two weeks amid an industry wide micro ship shortage. So you can imagine why Tesla has been pulling out all the stops to get its sales back up. But those are far from the only reasons why Tesla dropped its EV prices in China. Originally Tesla offered an insurance incentive of 970 dollars to new EV purchases in China between October 1st and December 30th 2022. But then Tesla decided to hike the insurance incentive up to 1105.. This insurance incentive is in the form of a cash rebate with Teslas Insurance Partners in China. You see the capacity at both Teslas gigafactory in Shanghai and in Berlin is up. That means that theres no longer a big need for Tesla to export its EVS from China to Europe. Thatll be its Berlins Factory responsibility now, so Tesla is left with all this extra EV producing capacity and nothing to do with subsidies. And when I tell you that Tesla is trying the hardest to push their EV sales in China before the end of 2022, I mean it. The question is: will this price drop they do a price War over who can sell the cheapest EV in China? Cutting the prices of its entire model 3 and model y lineup in China theres an awesome move.
Some in the industry are concerned that this price drop will lead to a price War in China, others not so much. Secretary General of the China passenger car Association announced that by the end of 2022., there are no accepted widespread price Cuts in Chinas new energy vehicle or Nev Mark. Instead, China should expect to see a possible wave of price increases. The Nev tax exemptions that already exist today will stay in China till the end of 2023, but its a different story for the state purchase subsidies, Chinas State purchase subsidies for any view purchases will expire at the end of 2022., like Tesla other EV companies in China Have been trying to get as many EV sales in as they can before the state purchase subsidies expire, the entire Ford, Mustang e model, lineup got a price cut and the Nev brand Ito, which is backed by Huawei, also started offering purchase incentives for its customers. But the thing is: if car companies then decide to hike their price back up in January, dongsu says theyll, be in an awkward position and well see unfavorable sales activities but heres. Another thing after announcing the major price drops on this model: 3 and model y EBS in China, Tesla stock, okay, yeah there wasnt a little hit the fact that Tesla announced it would be recalling more than 40 000 2017 to 2021 Model S. The model X EVS due to a possible power steering assist feature didnt help Tesla stock either and then Elon Musk bought Twitter from October 28 to November 9th 2022 Teslas stock shed 17 percent of its value safe to say, Tesla stocks got hit hard and who knows What will happen to it in the coming weeks even so touched? The 71 704 Shanghai gigafactor October delivers were up 32 percent this past October, compared to the year before.
In October 2022, Tesla exported 54 504 Vehicles permits Shanghai gigafactory and it sold 17 200 of its Eva hes in China. In the third quarter, Tesla reported deliveries of 343 830 cars thats an increase of 42 percent from the year before now, while this might sound promising at first Teslas third quarter, deliveries were actually much lower than what analysts had estimated and then theres byd byd stands for Build your dreams yet, even though it has an English acronym for a company name, byd is a major Chinese automaker that is currently headquartered in xinjiang. Guangdong China, and when I say major, I mean major byd is the largest Evian plug in hybrid maker in China. There are also Chinas largest seller of pure electric vehicles. In the November data byd had 37 168 Nev Insurance registrations. Tesla came in second with only 11 195 Nev Insurance registrations. Unofficially, China, vehicle registration data for the first week of November 2022 showed that Tesla was behind byd by a large margin for overall vehicle unit sales. If Teslas wanted to drop its prices in China, does that mean theyre also planning to drop their prices here in the United States? The answer might surprise you back in July 2022., Elon Musk tweeted that if inflation were to calmed down, Tesla would be willing to lower its prices for its EVS back in March 2022, Tesla increased its prices on all its car models and then Tesla increased. The price of model y, long range and EVS in June, why, back in March, musk had tweeted both Tesla and SpaceX, were seeing significant recent inflation pressure and Logistics and raw material and in later June, just before the model y price hike.
Musk said in an email that he had a super bad feeling about the economy and the Tesla. We need to cut 10 percent of its employees, so musks tweet in July. Only one month later was a welcome surprise. Then again, A lot has changed in the car market and for Tesla, specifically since July 2022. So whether or not Tesla will one day lower its EV prices Still Remains up in the air. But now you tell me: do you think Teslas shipping its Vehicles made in China, the United States is a good idea. Would you buy a Tesla EV, a Tesla decides to drop its prices here in the states. Please share by commenting below.