Sales of the Tesla Inc (TSLA) Model Y SUV, assembled at the Gigafactory in Shanghai, have begun in China. In November, Chinese authorities granted the company permission to distribute. Tesla earlier only sold the Model S and Model X in China. It cost a little less than 400 thousand yuan for a new Chinese SUV, which is 52.4 thousand dollars.
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In other markets, including the United States, the base Model Y costs 42 thousand dollars. Due to the growth in production volumes, Tesla may announce new discounts in China in the coming months. Approximately 40% of the company’s sales are attributed to China, with the remaining 60% coming from Europe and the United States.
The number of Tesla Inc (TSLA) electric vehicles shipped over the past year did fall short of Elon Musk’s goal of 500,000. Although, every quarter, the company showed an increase in their volume, and there was no unprofitable period. A lot of this success can be attributed to the Shanghai factory’s work, which now assembles the entire Tesla lineup.
In the context of current market growth conditions, the market for electric vehicles is expected to grow by at least 70% in the next two years and double within China, while the demand for them is likely to triple until 2025. This data follows that Tesla needs only to maintain its current growth rates to surpass the market by about 20% to sell a million cars a year by 2022.
In comparison with other tech companies, Tesla shares have traditionally exhibited a high value-to-earnings ratio. However, The Company made further progress during the previous months despite these factors. Investors continue to hold Tesla in high regard in the post-view world. On the horizon of the next three months, the stock has the potential to break the $1000 level.
However, thanks to the Chinese Government’s subsidies, local China’s EV manufacturer might give Tesla Inc (TSLA) a tough time soon.
