Hundreds of China customers flocked to Tesla's dealerships across the country Monday to check out the company's latest offering - its Shanghai-made Model Y electric sport utility vehicle.
The battery-powered SUV is Tesla's second locally built vehicle. It was officially launched this month and Monday was the first time buyers were able to place their orders.
Unfortunately, buyers of the new Model Y will have to wait before they get their vehicles. Staff at the company's showroom on Shibo Avenue in Pudong said that deliveries of the new model will begin in late February.
Telsa has priced its China-made Model Ys cheaper than those sold in other markets. The company is attempting to woo buyers in China to acquire a larger share in the world's largest EV market.
Tesla has priced the long range version of the Model Y 30% lower than the initial price quoted by the company more than six months ago. The vehicle starts at around $52,074.
The price places the China-made Model Y at the same price range as products offered by its local competitors. This includes Li Auto's ONE SUV, Nio's ES6 SUV, and Xpeng Motor's P7 electric sedan.
This gives Tesla a big advantage over other international brands, such as Mercedes-Benz and BMW, whose similar electric products are priced much higher.
Local reports said that some customers who preordered vehicles from local competitors have changed their minds and are now ordering Tesla's Model Y instead.
Analysts said that the release of the Model Y in China will likely escalate competition in the premium electric vehicle segment. The Tesla Model Y is expected to dominate - at least in the short term, analysts said.
"The prices are so attractive that we cannot resist. It will not take too long before we see a lot of Model Ys clog the streets," one customer said.
Tesla has seen immense success in China, particularly after it launched its first mass-produced model - the Tesla Model 3. The company is expected to start deliveries of the first locally-made Model 3s this month.