Tesla Reduces Model Y And Model 3 Delivery Times In China

According to a recent report published by Teslarati, the US electric automaker has reduced delivery times in China to just one week in some specific cases. This could either mean that after the recent Giga Shanghai factory upgrades Tesla is cranking out cars so quickly it can now deliver them almost immediately, or the demand for its vehicles is waning in the country.

Ever since we first started reporting on Tesla many years ago, there have been concerns about demand. Clearly, the people who thought there would never be demand for Tesla’s EVs were wrong. However, with more compelling (and less expensive) rivals coming to market, it would make sense if fewer people were buying Teslas over more affordable options.

After Tesla finished the upgrades at Giga Shanghai, its production capacity improved exponentially. In fact, its ability to produce the Model Y and Model 3 is so much quicker now that it’s not even dialing it up to full capacity prior to the end of 2022. 

Tesla produces cars in China not only for the local market, but also for countries across the globe. Part of the reason it worked to improve production capacity in Shanghai is to ensure that its primary export hub can meet demand. However, while China was supplying Europe with Model Y crossovers in the past, Tesla’s new Gigafactory near Berlin, Germany, is also ramping up production.

When a company can suddenly produce many more cars than it ever has before, it can finally begin to catch up with, and eventually meet, demand. This can be seen as a positive, as Elon Musk has noted that delivery times at Tesla are ridiculous and need to be fixed. If people can order a Tesla and get it right away, this is yet another huge advantage the electric automaker could have over its rivals.

At any rate, there will most certainly be continued reports of Tesla’s growing demand issues in China. This is not only due to this latest story about significantly reduced delivery times, but also the fact that the carmaker has lowered the prices of its vehicles in the country, along with offering incentives.

In the US, Tesla no longer offers incentives, and it continues to raise prices. However, it’s still relying primarily on the original Fremont factory to satisfy demand as Giga Texas slowly ramps up.

Tesla has impressed with many records in China, including exporting more vehicles in October 2022 than ever before. There are also many markets the automaker has been unable to enter since it simply couldn’t produce enough cars for its current markets. Giga Shanghai’s new production rate should allow Tesla to begin to enter into new markets, especially as the financial situation improves across the globe.

Teslarati notes that you can get a Model 3 right now in China pretty quickly, but the Model 3 Performance isn’t available until 2023. Meanwhile, you’ll have to wait many months to get a Model 3 in Europe. The Model Y also has long wait times in the US and Europe, though in some cases you can get the electric crossover in China in about a week.

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