After rolling out the Model 3 in China last year, Tesla's big push on the world's second-biggest economy is now focused on the Model Y crossover. The electrified SUV is now available for ordering and media reports from Shanghai seemed to indicate that the electric vehicle is winning the hearts of Chinese buyers.
The order page set by Tesla for the Chinese market was reportedly overwhelmed by the flood of visitors wanting to secure the limited numbers of Model Y that will be delivered starting in February. The automaker has yet to release the early figures on the orders confirmed so far but it seemed clear that the existing inventory of the small SUV will not meet the surging demand.
Tesla only started assembling the Model Y at its Giga Shanghai facilities sometime in December so it's understandable that the SUV will be offered in limited stocks, at least in the early months of availability. And local buyers are aware they need to race against others to land the coveted EV.
As of January 1, the day that the Model Y order page in China went live, Tesla's website started freezing for late visitors, somehow indicating that the latest EV release is another blockbuster in the making, CGTN reported.
The market response generated by the Model Y was hardly surprising. For one, anything SUV is a hot item for Chinese buyers with extra money to spend on premium items, and more so if the vehicle bears the Tesla badge.
However, as the same report noted, the Model Y's strongest selling point at this time is the prevailing sticker price. Tesla now sells the all-electric crossover starting at $52,000 and that price point represents a 30% markdown off the price tag advertised last year. To be sure, many in China are convinced the freshly rolled out EV is a good bang for the bucks.
Another come-on for would-be buyers is the promise of incentives from the Chinese government. Beijing wants more people to shift from conventional vehicles to EVs to reduce the nation's carbon footprint so subsidies are offered to EV buyers.
That means the cost of owning a Model Y or any other battery-powered automobile will be cut down significantly.
Also, Chinese buyers are drawn to Tesla not only because of the prestige associated with the brand. The Model Y, in fact, is a beautiful monster that can cover a driving range of up to 370 miles per charge. It's hard to argue that the SUV - modern and earth-friendly - is a compelling buy.
Possibly a proof of the Model Y's irresistible allure was the decision by some EV lovers in China to cancel their reservation for locally-built EVs. According to Electrek, the Tesla small SUV's competitive pricing simply proved too tempting.
It should be noted that both the Model 3 and Model Y got their attractive price due to the insistence of Tesla CEO Elon Musk to build the vehicles in China. His tactic is paying off.
