Tesla is already selling a ton of vehicles in China thanks to the recent completion of its Shanghai factory, but demand is increasing even more, though it’s unclear if supply will be able to deliver.
A drop in prices along with new legislation from the Chinese government have both caused Tesla demand to explode in Shanghai, as reported by Tesmanian (use coupon code TESLANORTH10 to save 10% off floor mats and more).
The Tesla Model 3 costs of the Standard Range Plus and the Long Range Motor RWD were lowered by 8% and 11%, respectively, reflecting new prices of 249,900 RMB ($36,802.50 USD) for the former, and 309,900 RMB ($45,638.63 USD) for the latter.
Additionally, Monday was the first day of new legislation limiting registrations for out-of-city vehicles inside Shanghai, which is set to ban roughly 1.7 million non-Shanghai registered vehicles. The limits are in effect between 7:00 am and 8:00 pm, reportedly to curb the levels of traffic within the city.
I reported 5 days ago regarding the new regulation in Shanghai limiting out-of-city vehicles on major city roads. Now EV sales is ticking up big time.
This is how the Tesla store foot traffic looks like during daytime & nighttime on the 1st day of policy implementation(today). https://t.co/zhHLOaDTEc pic.twitter.com/8Bmjv4iwqX
— Ray (@ray4tesla) November 2, 2020
While the change may have major long-term impacts for the US automaker Tesla, it’s currently boosting demand, some even estimating that the regulation could create market gaps of 130,000 made-in-China Model 3s for delivery and registration within Shanghai alone.
Tesla may see its goal of 500,000 vehicles produced in one year, assisted by the boost in demand in China.
While companies like Tesla and Nio stand to gain an incredible amount of business from the update, the future of China’s conventional gas vehicles is quickly becoming murky.
