Tianfeng Securities has released a new research report which says Tesla will be able to drastically cut the price of the made-in-China Model Y.
The report, which looks at the the automaker’s pricing strategy between models, says the current price difference in the US between the Model 3 and Model Y is 6-9%.
After a recent price drop, the made-in-China Standard Range Plus (SR+) Model 3 now starts at ¥249,900 ($48,905 CAD), including available incentives. The RWD LR Model 3 was also lowered to ¥309,000 ($60,400 CAD) before incentives.
The authors conclude that if Tesla continues this trend, once production ramps up the price of the Model Y in China will eventually drop to as low as ¥275,000 ($53,800 CAD).
Along with the predicted price cut, the report also says the automaker can expect to sell 30,000 Model Y’s per month in China, or 360,000 units annually.
For Tesla as a whole, they also predict sales will reach 880,000 next year, growing further to 1,800,000 in 2022.
Tesla is preparing to launch the Model Y in China very soon. Originally scheduled for early next year, pilot production has already begun, and the first deliveries are rumoured to begin before the end of the year.
The Long Range model Y starts at ¥488,000 ($92,700 CAD), while the Performance starts at ¥535,000 ($101,600 CAD).
Source: SeekAdvice
