If Tesla delivery times are of any indication of Tesla demand in China, we just learned that the delivery time is now longer on some China Tesla models after Friday's price cuts.
As of Monday, the wait time for certain Tesla models was two to five weeks. Those models included the Model 3 and the performance version of the Model Y. The wait time for these models was one to four weeks as of Monday, so there was a slight difference. The wait time for other models, such as the Model S, Model X, and the standard version of the Model Y, were two to five weeks as of Monday. This could be due to increased demand for certain models or production delays. It could also be due to the fact that certain models are newer and require more resources to produce.
Regardless of the cause, the wait time is still longer than usual for certain models. This could lead to customer dissatisfaction, so it is important that companies are aware of the wait times and adjust accordingly.
Tesla, the world's most valuable automaker, cut prices by 6 - 13.5% on Friday in discounts that brought some of its cars to near BYD's best-selling models. This move has been interpreted by analysts as a sign that a price war could be building at a time when demand in China has faltered. Tesla's move comes after BYD, a domestic electric car maker, lowered the price of its flagship model, the Yuan EV 300, earlier this month. As a result, the price of the Yuan EV 300 is now 18.9% lower than the starting price of the Tesla Model 3 in China.
Tesla has responded by lowering the price of its own Model 3 in the country, which is similar to the BYD Yuan EV 300 in terms of specifications and features. The fresh round of price cuts, however, has drawn mixed reactions from the market. Some experts are of the opinion that the move could further weaken Tesla's already fragile financial position, while others believe that it could be a smart move to grab a larger share of the market in the Chinese EV industry. Tesla's price cuts could also lead to a price war between the two automakers, as well as other Chinese EV makers, as they fight for their share of the market.
Reuters reports that "As of Monday, Tesla had not made any adjustment to its January production plan for its Shanghai plant, with suspension of the assembly lines to start from Jan. 20 through the end of the month, a person with knowledge of the matter said."
Armen Hareyan is the founder and the Editor in Chief of Torque News. He founded TorqueNews.com in 2010, which since then has been publishing expert news and analysis about the automotive industry. He can be reached at Torque News Twitter, Facebok, Linkedin and Youtube.