Tesla exports flagship EV “Model 3” from China to Europe

Tesla, a major electric vehicle (EV) company in the United States, announced on October 19 that it will export its flagship EV “Model 3” produced at its plant in Shanghai, China, to Europe. Shipments will begin within the month to more than 10 countries including Germany, France, Italy and Switzerland.

The “Gigafactory” built by Tesla in Shanghai will begin delivery to the Chinese market in January. At the moment, only Model 3 is produced, and the annual production capacity is 150,000 units. The company’s CEO, Elon Musk, announced at a shareholders’ meeting held in California, USA on September 22 that it would increase the annual production capacity of its Shanghai plant to 1 million units.

According to data from a car sales industry group, Tesla sold a total of 80,500 units in the Chinese market from January to September 2020, and the Shanghai plant still has plenty of production capacity. The company is also constructing a new plant in Berlin, Germany, with the aim of completing it in July 2021, where it plans to produce the “Model Y” SUV. Therefore, the Model 3 for the European market will be exported from the Shanghai plant for the time being.

EV sales are growing rapidly in the European automobile market. This is because each country is increasing subsidies for EVs against the backdrop of the tightening of CO2 (carbon dioxide) emission regulations in the EU (European Union). In Germany, for example, when a consumer purchases an EV, a subsidy of up to 6,000 euros (about 740,000 yen) is provided per vehicle. France has raised its budget for EV subsidies from a total of 260 million euros to 400 million euros this year.

Meanwhile, the Model 3 made in China may be the trump card for Tesla to expand sales in Europe. This is because the Chinese version of the “Standard Range Plus,” which is a low-priced model 3 model, uses a low-cost “iron phosphate-based” lithium-ion battery as the power source. This is because the real price after using the subsidy from the Chinese government has just been reduced to 249,900 yuan (about 3.93 million yen) from October 1.

This article is provided by “Caixin”
According to Tesla, the specifications of the Model 3 exported to the European market are the same as those for China. The Model 3 that had been sold in Europe so far is made by the Fremont factory in the United States, and it seems likely that the price will be reduced along with the switch to the Shanghai factory