Tesla Corporation of the United States has released the latest electric car Tesla Model Y, which is an electric compact SUV.
The standard range version of the Model Y is expected to be priced at US$39,000 for the American market and will be delivered to US buyers in late 2020.
The Tesla Model Y will be assembled in Nevada, USA. In addition to being produced in the United States, the car will be assembled at a factory in Shanghai, China as well, and Tesla’s Shanghai factory will make cars for its Asian market.
After the price of the Tesla Model Y was announced, it caused panic in the Chinese auto market. Tesla said that the cost of the Model 3 produced at the Chinese factory would be 200,000 RMB, which will significantly affect China’s domestic automakers. Subsequently, Mercedes-Benz, BMW and other European automakers have begun to cut their prices in mainland China.
Tesla’s move has taken the lead in the competition in the Chinese auto market, and it has also seriously challenged China’s protection policy for its local automakers. Once the more advanced foreign auto brands have kicked into the Chinese market with “affordable” prices, Chinese auto companies will have a hard time competing.
In the fierce market competition, the real beneficiaries will be Chinese consumers, and China’s auto group will be challenged. Will the Chinese government protect its own auto companies?