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Tesla To Deliver First Cars From Its China Factory To Customers On December 30

Tesla To Deliver First Cars From Its China Factory To Customers On December 30
After giving started construction of its only production unit outside of its home country of the United States only in January of this year, electric car maker Tesla is reportedly ready to deliver its first cars manufactured in its Chinese facility at Shanghai form December 30, according to a comment made by a company representative to the media.
Production in the Shanghai plant started in October this year. Tesla has set a target of manufacturing 250,000 vehicles a year at the facility following the addition of production of the Model Y in the initial phase. The company representative said that the company will deliver cars to the first 15 customers on December 30 – all of whom are Tesla employees. That delivery means that the Shanghai Tesla plant will be able to start delivering of cars in just 357 days since the construction of the factory began. That will be a new record for global automakers in China.
The price of Tesla cars made in China will be at 355,800 yuan or $50,000 before subsidies. The company has said that it wants to start delivering cars to waiting customers before the start of the Chinese New Year which start on January 25.
The construction of its plant in China was aimed to increase the presence of Tesla in the largest electric car market of the world while also trying to avoid the import tariffs on US made products by China as a part of the US-China trade war.
China is a very important market for Tesla and a critical one for the company to achieve sustained profitability because 1.3 million new-energy vehicles were sold in China last year. The company accords great importance to the Chinese market and offers elements such as such as racing events and showroom parties. And in order to assure its customers about the availability of standardised after-sales service, Tesla is also constructing a network of service centres and charging stations across China.
It has been reported earlier that the Chinese government has also lend its support to the Tesla factory Shanghai. It also marks the first factor in the country that is completely and wholly owned by a foreign  car making company. Many analysts also see this government support as a means of the Chinese authorities to show that it is slowing but surely opening up the auto, as well as other sectors, to foreign companies.
It had added Tesla's China-made Model 3 to a list of new energy vehicles exempt from purchase tax, said China’s Ministry of Industry and Information Technology on Friday. Earlier in August, the ministry had said that all of Tesla's models had been expempted by it from purchase tax.

Christopher J. Mitchell

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