Tesla’s been hard at work getting its Chinese Model Y production up and running at the massive Gigafactory complex outside of Shanghai, and now, according to a report published Thursday by Reuters, that hard work has paid off.
The Big T has begun sales of the Chinese-built Model Y at a starting price of 339,900 yuan (or $52,091.95 at current exchange rates), which is actually only $2,191 more than our version of the Model Y Long Range.
Tesla’s pricing strategy for Model Y in the world’s largest market for cars is simple: undercut the other guys. That’s why Model Y will be slightly cheaper than offerings from Nio, for example, which retails for the equivalent of $56,329.
Interestingly, while Tesla’s Model 3 gets the benefit of China’s electric vehicle subsidy, Model Y doesn’t qualify because of its price. It’s also not totally clear whether there are plans in the works to equip the Model Y with the base Model 3’s cheaper lithium-iron-phosphate battery cells, which would, in theory, bring the price down.
Since Tesla doesn’t have a PR department, I tweeted at Elon Musk about this, but I’m not holding my breath for a response.