The Tesla Model Y crossover is officially out in China and the automaker is selling the EV at a more affordable rate than originally advertised. Unsurprisingly, Chinese buyers greeted the SUV with enthusiasm and they are rushing to place their orders.
The Long Range variant of the Model Y, for instance, retails for a little over $52,000 and the selling price represents a 30% discount from the price level announced during the EV's unveiling a few months back. Would-be buyers also stand to get government incentives so the purchase becomes even more compelling.
The Hong Kong-based South China Morning Post characterized the Model Y's entry to the country as "rousing" and customers are finding it hard to resist the lure of Tesla's offering. One buyer predicted that the electrified SUV is so tempting that the streets of Shanghai will soon be flooded with Model Ys.
Dealerships around China, the world's second-biggest economy, have started taking orders this January 2021 but delivery is not expected to start until next month.
Tesla's business model for the Model Y is projected to further heat up the premium EV market and analysts are saying that the automaker's move could lead to a pricing war that would benefit the consumers. Per the same report, Tesla intends to dominate China, seen as the world's most lucrative EV market, and rivals are expected to make their counter moves.
Already, local EV players are feeling the pressure of Tesla's aggressive push as reports said Chinese buyers have opted to cancel reservations of China-built electric vehicles in favor of the Model Y and the Model 3.
The latest development seemed to indicate that Tesla's game plan for China is working. According to CNET, the company's design for markets outside of the United States is to assemble Tesla EVs locally and offer them at competitive pricing. Such an approach is now being applied with the Model 3 and Model Y, and judging from the reactions so far, the tactic is making headway.
The same will be seen in future EV releases of Tesla, which suggests that the upcoming Roadster and Cybertruck will be introduced to the world using the same approach. So it's fair to assume that Tesla's Supercar and electrified pickup truck will be even more compelling for the international market.
This is likely true in China and Germany where the automaker is constructing soon-to-be-completed Gigafactories.
For Tesla, the end-goal is to undercut the competition and the company is starting off with the Model Y and Model 3. The automaker is looking to establish a significant head start as rivals like GMC and Ford are fast catching up, and they certainly want a piece of the massive EV market in China.
