With 2019 coming to a close, Tesla is showing few signs of taking things easy in what is typically a quiet period for many leading Bay Area businesses.
As Tesla’s shares continued their year-long surge, and rose to another all-time high of $435.31 on Friday, the electric carmaker is about to make the first deliveries of Model 3 sedans built at its new Gigafactory production facility in Shanghai. According to a report from Bloomberg, the first Model 3 deliveries will go out to Tesla employees in China on Monday, Dec. 30.
Deliveries is the term Tesla uses for car sales once payment has been received, and a customer takes ownership of a vehicle.
Making deliveries from its Chinese plant by the end of the year is a milestone for Tesla. The company broke ground on its Shanghai Gigafactory only in January, and began rolling the first cars off the facility’s assembly line in October. Tesla has made China a major market for its international growth efforts, with Chief Executive Elon Musk saying the company should be producing 1,000 cars a week at the Shanghai plant by the end of this year, and that the facility at its peak will be capable of building up to 500,000 cars a year.
Additionally, Tesla received a tax break on Friday, as China included the Model 3 on a list of items that won’t be subjected to a 10% tax on purchases made within the country. The Chinese-built Model 3 is expected to come with a base sticker price equal to $50,000, but Tesla is said to be considering cutting the car’s price by as much as 20% next year as it becomes capable of lowering production costs and uses more components from Chinese suppliers.
The lastest updates on Tesla’s Model 3 efforts in China come one day after the company said in a U.S. Securities and Exchange Commission filing that it has secured the equivalent of $1.29 billion in loans from Chinese banks in order to help fund expansion and production at the Shanghai Gigafactory.
Tesla didn’t immediately return a request for further comment on its Chinese car-production efforts.
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December 27, 2019 at 11:40PM
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Tesla to deliver first Chinese-built Model 3 cars on Monday: report - The Mercury News
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