Despite their high price, Tesla’s vehicles have proved very popular in China. Local rivals produce cheaper EVs. While some have given Tesla a run for its money, the California electric automaker has seen much success in China, even amid some hard bumps in the road.
Tesla’s popularity in China is believed to be temporary, and it will fade away as people purchase other models instead. Furthermore, recent protests and other issues in the country contributed to slowing Tesla sales to a degree, though not as much as some media outlets falsely reported.
The answer for China is likely to be a cheaper Tesla model, which the automaker says will eventually arrive. Meanwhile, Tesla has introduced the Model Y Standard Range in China, a rear-wheel-drive crossover with a single motor that is significantly cheaper than the current model. In China, the Model Y is already trendy, so this move makes perfect sense.
Exodus to Model Y SR RWD is happening? According to @42how_ , a Weichat group of Mach-E reservation holders wasted no time changing its profile name to Model Y upon intro of the SR RWD variant yesterday. The whole group switched their Mach-E reservations to MY. That was so easy😂 https://t.co/1OnvSw35nX pic.twitter.com/WJnXYJdXTm
— Ray (@ray4tesla) July 8, 2021
Not long after Tesla announced the Model Y Standard Range, EV buyers in China started switching their orders away from the Ford Mustang Mach-E in favor of the new Model Y variant. Moreover, according to @42how_, a group of potential Ford Mustang Mach-E renamed their Weibo group “Model Y Standard Range” when the cheaper Tesla was announced.
Tesla frequently makes significant moves to control demand, and sometimes those changes are implemented to slow demand. The problem is that Tesla cannot possibly build so many cars as people want. In some cases, Tesla pulls the demand lever and tries to improve demand, at least in certain markets and at specific times.
It’s a waiting game at this point, but we’ll watch to see if Tesla’s Model Y Standard Range leads to even greater success in China. If it doesn’t, the company is almost certain to cancel it in the US. It’s practically proof that a $25,000 Tesla compact car will sell incredibly well in the country and probably around the world if it does.