Tesla Inc TSLA’s recently launched Model Y standard variant is receiving a flood of orders in China, cnEVpost reported on Monday, citing Securities Daily.
What Happened: Customers in China who have placed orders will have to wait until September for deliveries, the report noted.
The Palo Alto, California-based company is planning to run its Shanghai Gigafactory at full capacity to ensure availability, cnEVpost, citing a staff member at the electric vehicle company’s experience center.
Tesla’s locally-built Model Y standard variant in China qualifies for state-led subsidies as it is sold under RMB 300,000 ($46,000).
See Also: Tesla, Ford's 'Tight Inventory' Woes To Continue, Says Munster
Why It Matters: The Elon Musk-led electric automaker began selling a higher-priced version of the locally-made Model Y in China earlier this year in January after it had started manufacturing the SUV at its Shanghai Gigafactory.
The company began accepting bookings at RMB 276,000 ($42,619) for an estimated 322 miles range, counting subsidies, with expected delivery in August, as per Tesla’s website.
The Model Y standard variant’s price range narrows the price gap with Tesla’s entry-level Model 3, which comes at a ticket price of RMB 250,900 ($38,728).
As per the report, Model Y price cuts in China have impacted sales of Model 3, Tesla’s entry-level sedan, and the launch of the standard variant could further impact the Model 3 sales.
Price Action: Tesla shares closed 0.63% higher at $656.95.
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