ICYMI: Tesla will begin delivering Model 3 sedans from its newly built Gigafactory in Shanghai, China, to domestic consumers in the next six to ten months:
This is an excerpt from a story delivered exclusively to Business Insider Intelligence Transportation & Logistics Briefing subscribers.Tesla, the US-based electric vehicle maker, will begin delivering Model 3 sedans from its newly built Gigafactory in Shanghai, China, to domestic consumers in the next six to ten months, according to The Wall Street Journal .
This will let it take advantage of China's favorable EV regulations, which include a consumer subsidy that is expected to be cut in 2020. If the subsidy enables Tesla to drop its prices even further, the company could carve out a stronger position in the highly lucrative Chinese market. The market has been off to a positive start in 2019, with 254,000 EVs sold in Q1 2019, a 118% year-over-year jump from the 117,000 sold in Q1 2018. Ultimately, China is expected to maintain its market-leading position for the foreseeable future, as annual EV sales are expected to reach nearly 5.5 million units in 2025.Tesla will struggle to become a market leader in China, but it won't matter for the company's long-term growth.
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