Omari Gates
Tesla's Model 3 vehicles sold in Australia are manufactured in China. The Shanghai factory is Tesla's first factory outside of the US and its first abroad. The Model 3 vehicles are shipped to right-hand drive markets, including Australia, from Shanghai. The Chinese-built 2021 Tesla Model 3 is available to order, with a nine to 12-week wait time listed on Tesla Australia's website.
| Characteristics | Values |
|---|---|
| Place of Manufacture | Shanghai, China |
| Number of Vehicles | 800 |
| Variants | Standard Range Plus, Long Range |
| Range | 629 kilometres (WLTP) on a single charge |
| Colours | Stealth Grey, Ultra Red |
| Interior | Wraparound styling, customisable ambient lighting |
| Safety Features | Energy-absorbing side sills, a fortified battery pack mounted low in the vehicle, a metal body structure, automatic emergency braking, autopilot |
| Infotainment | Centre touchscreen, Tesla app |
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What You'll Learn
Tesla Model 3s are made in China
The switch to Chinese production was intended to reduce wait times for customers in the Asia-Pacific region. In 2023, thousands of right-hand-drive Model 3s were spotted at the port in Shanghai, with an update to the model expected soon.
The price of the Model 3 in Australia has remained unchanged since October 2022, despite the production cost of Chinese-built variants being reportedly lower than their US-built counterparts. However, Tesla is working on reducing production costs by localising the supply of parts.
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They are shipped to Shanghai port
Tesla's Gigafactory in Shanghai, China, is the company's first factory outside the US. The Shanghai factory produces the Tesla Model 3 and Model Y.
Thousands of right-hand-drive Tesla Model 3s have been spotted at the Shanghai port, with an update to the model imminent. These vehicles are destined for Australia, New Zealand, Singapore, and other Asia-Pacific right-hand-drive markets.
The Shanghai factory has a production capacity of 200,000 vehicles per annum, according to Tesla's Q2 2020 earnings report. Tesla plans to reduce production costs by localising the supply of parts. The company expects that by the end of 2020, the China-made Model 3 would be 80% locally made.
The Chinese-built 2021 Tesla Model 3 is now available to order in Australia, with a nine to 12-week wait time. The production switch from the Fremont factory in California aims to reduce wait times for customers in the Asia-Pacific region.
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The cars are right-hand drive
The Tesla Model 3 is a popular electric sedan that has been manufactured in Shanghai, China, since 2019. The Shanghai factory is Tesla's first factory outside the US and was built to produce affordable versions of the Tesla Model 3 and Model Y for the "greater China" region. However, in 2020, Tesla reportedly began shipping China-made Model 3 vehicles to right-hand-drive markets, including Australia, New Zealand, and Singapore. This marked a shift from their previous decision that the Shanghai factory would only serve the "greater China" region.
The decision to ship China-made Model 3 vehicles to right-hand-drive markets like Australia was likely influenced by the demand for more affordable electric vehicles in these countries. By localizing the supply of parts and manufacturing the vehicles closer to the target markets, Tesla could reduce production costs and potentially offer more competitive pricing in these regions.
In late 2023, thousands of right-hand-drive Tesla Model 3 vehicles were spotted at the port in Shanghai, indicating that Tesla was preparing to ship a large batch of these vehicles to right-hand-drive markets like Australia. This was further supported by reports that the Shanghai factory was being upgraded in preparation for the new Tesla Model 3 version.
The first significant batch of Chinese-built Tesla Model 3 electric vehicles arrived in Australia in late 2023, with approximately 800 vehicles delivered to a storage facility in Wollongong's Port Kembla. While the production cost of Chinese-built variants is reportedly lower than their US-built counterparts, it is unclear if these savings will be passed on to Australian buyers as prices have remained unchanged.
Overall, the availability of right-hand-drive Tesla Model 3 vehicles produced in China is a significant development for the Australian market, contributing to the country's decarbonization efforts and providing consumers with more affordable options for electric vehicles.
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They have unique features for Australian customers
The Tesla Model 3 is made for Australian customers in China, specifically at Tesla's Shanghai factory. This factory is Tesla's first outside the US and began production in late 2019.
The Model 3 is designed to be safe, with energy-absorbing side sills, a fortified battery pack mounted low in the vehicle to reduce rollover risk, and a metal body structure that can withstand many times the car’s weight. Active safety features like automatic emergency braking also come as standard.
The Model 3 is also designed to be efficient, with a range of up to 629 kilometres on a single charge, thanks to its optimised exterior styling for maximum aerodynamics.
The Model 3 is equipped with a centre touchscreen that allows users to stream media, customise their vehicle, and navigate to their destination. Users can also control their vehicle remotely using the Tesla app, including pre-heating or cooling the cabin from anywhere.
One unique feature of the Model 3 for Australian customers is the removal of the iconic wood trim on the interior, which has been replaced with ABS bonded foam non-woven fabric. This change was first reported by a Tesla enthusiast and news source, Chris Zheng, on Twitter.
In addition, the Model 3 Standard Range Plus can be optioned with 19-inch 'Sport' alloy wheels, previously exclusive to the Long Range variant. The Chinese-built Model 3 also offers an increased NEDC-rated driving range of 508km, an upgrade from the previous range of 490km.
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The price of the Model 3 in China is lower
Tesla Model 3s are currently produced in Shanghai, China, and then shipped to Australia. The price of the Model 3 in China is lower than in other markets due to several factors, including production costs, competition, and sales performance.
Firstly, Tesla has a large factory in Shanghai that serves as its first and largest production base outside of the United States. This factory has an annual capacity of more than 950,000 vehicles. By producing the Model 3 locally in China, Tesla can take advantage of lower labour and operational costs compared to manufacturing in other regions. Additionally, the Shanghai factory's proximity to suppliers and local markets reduces logistics expenses.
Secondly, the pricing strategy in China reflects the intense competition in the country's electric vehicle (EV) market. Tesla competes with a trio of domestic EV makers, namely Nio, Xpeng, and Li Auto, to sell EVs at around 300,000 yuan each. Moreover, BYD, another Chinese manufacturer, dominates the lower end of the market with no-frills models priced between 100,000 and 200,000 yuan. To maintain its market position and attract customers, Tesla has implemented price cuts and discounts on the Model 3 in China.
Furthermore, Tesla's decision to lower prices in China can be attributed to sales performance and market share. In 2023, Tesla sold 603,664 vehicles in China, representing a year-on-year increase of 37.27%. However, the Model 3's first major update after six years on the market had a limited impact on sales due to the presence of numerous competing models. Tesla's price reductions aim to boost sales and increase their market share in China.
It is worth noting that Tesla's price adjustments in China are not always consistent. While they have implemented significant price cuts, such as the one on January 6, 2023, they have also made small price increases, particularly towards the end of 2023. These incremental hikes may be strategic moves to encourage customers to take delivery of their vehicles before the end of the year.
In summary, the price of the Tesla Model 3 in China is lower due to a combination of factors, including the local production in Shanghai, competitive market pressures, and sales performance. By reducing prices, Tesla aims to maintain its market position, attract customers, and increase its market share in the highly competitive Chinese EV market.
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Frequently asked questions
The Tesla Model 3 sold in Australia is made in China.
The Tesla Model 3s are made at Tesla's Shanghai factory, also known as the "Giga 3" factory.
The Shanghai factory began producing the Tesla Model 3 in the last days of 2019.
Tesla started producing the Model 3 in China to reduce wait times for customers in Europe and Asia-Pacific markets.
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