Tesla Delivers First Shanghai Gigafactory Built Model Y In China

As first posted by Ray4Tesla who has been reporting from China and now confirmed by Reuters, Tesla has started delivering Chinese-made Model Y to the local market.

The 1st batch of MIC Model Ys have been picked up today by owners at Shanghai Minghang Tesla Center. pic.twitter.com/oYsJL7KnU3— Ray4Tesla (@ray4tesla) January 18, 2021

This development comes a few months after Tesla started initial test production in Giga Shanghai. In the run-up to the first deliveries, Tesla has been showing products coming out of subsystems that will build the Model Y. Below is a picture of the Model Y in the paint shop of Giga Shanghai.

There seems to be a huge appetite in China for the mid-sized SUV, reports a week back had suggested due to the large demand, Model Y vehicles in China were sold out till the second half of the year.

Tesla got the go-ahead from the Chinese government back in November and the company has been busy tooling the inside of the factory. As of now the cheapest version of the car available in China is the Long Range trim and will start obtained permission to start at 339,900 yuan (US$52,400).

The performance version of the vehicle starts at 369,000 yuan (US$57,000). These prices are a bit high compared to the same vehicles in the US but Tesla points out some version of the Model Y in China might be eligible for subsidies that could amount to as much as 37,000 yuan (US$5700).

It is not yet clear how Tesla has managed to get incentives for Model Y in China. According to the latest adjustment to China’s central subsidy program for new energy vehicles (NEVs) released on April 23, 2020, vehicles to be eligible for the subsidy should cost less than 300,000 yuan (US$46,200)

The production capacity for the vehicle is expected to be 250,000 annually. This number is just for the Shanghai Gigafactory however Tesla plans to have similar production numbers for the production lines in its Fremont California plant. In addition, Tesla also plans to have a similar production number in its new Austin Texas, and Berlin Germany plants.

Tesla CEO Elon Musk believes the Model Y will be Tesla’s biggest selling vehicle. The projection is for the vehicle to have production numbers greater than the Model S, Model X, and the wildly successful Model 3 combined.

Despite the huge popularity of the Model Y Tesla doesn’t seem to be resting on its laurels. The company is already planning significant upgrades to the vehicle. One major upgrade that is expected to come to the vehicle with the compilation of the first phase of the Berlin Gigafactory is a move to entirely new cell chemistry and design.

Tesla’s newest 4680 battery cells are 54 percent more energy-dense than the 2170 cell the company currently uses in its newest vehicles including the Model Y.

In addition to the 4680 cells, the company also plans to implement a new chassis design that will integrate the battery cells as a structural component making the car much stiffer. This will lead to the vehicle weighing less and handling better in the corners.

So what do you think? Is the Model Y going to be successful in China? Do you think it will eventually outsell the Model S, X, and 3 combined? Let me know your thoughts down in the comments below.

For more information check out: Tesla Asked To Recall Over All Vehicles Built From 2012-2018, Except The Model 3
Also, see Surprise - Tesla's Model Y Has A Twice-Annual Service Requirement

,Tinsae Aregay has been following Tesla and The evolution of the EV space on a daily basis for several years. He covers everything about Tesla from the cars to Elon Musk, the energy business, and autonomy. Follow Tinsae on Twitter at
@TinsaeAregay for daily Tesla news.