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Is Tesla importing Chinese-made Model 3s into the United States?

For almost seven months, Tesla has not offered its Tesla Model 3 Long Range for sale. This variant of the car was no longer available for order, leaving customers and enthusiasts waiting for more information. However, this week Tesla made this version available again, sparking rumors about the origin of these vehicles. Are they made in China and imported into the United States? Let’s look at the evidence.

First, it’s important to note that the federal environmental bonus in the U.S. is tied to where the batteries are sourced and manufactured. Recently, it was discovered that the Tesla Model 3 Rear Wheel Drive and Tesla Model 3 Long Range have had their bonus reduced to $3750 versus $7500 for the Performance version. This change suggests that these two versions could be manufactured outside the United States, and China is a potential candidate.

Source : https://twitter.com/SawyerMerritt/status/1653581932079337475/photo/1

The fact that these two versions are again available for delivery in June reinforces the idea that they come from China. If Tesla had managed to ramp up production of these models in the U.S., it is likely that they would have been available for sale sooner. China, with its state-of-the-art factories and high production capacity, seems like a logical solution to the lack of availability of these models in the U.S.

In addition, a recent drone photo shows that in the parking lots of Tesla’s Shanghai factory, Tesla Model 3s are appearing with a U.S.-sized license plate holder. This clearly indicates that these cars are intended for the US market and not the Chinese market.

Source : https://twitter.com/mortenlund89/status/1653025670623031302/photo/1

But why would Tesla import Chinese-made Model 3s into the US? There are several possible reasons for this decision. First, China is the world’s largest automotive market and the country has made huge investments in infrastructure to support the growth of electric vehicles. Tesla may be looking to leverage these investments to increase production and meet the growing demand for its vehicles.

Second, there are cost advantages to producing electric vehicles in China. Labor and materials are generally cheaper in China than in the United States, which could save Tesla money and allow it to offer its vehicles at more competitive prices.

Finally, it is possible that Tesla is seeking to circumvent the trade tensions between the U.S. and China. By importing vehicles made in China, Tesla could avoid some trade restrictions and take advantage of the benefits offered by both countries.

However, it is also important to consider the potential drawbacks of this import strategy. First, the reduced environmental bonus for Chinese-made models could make these vehicles less attractive to U.S. consumers, especially those who are price sensitive. In addition, some customers may be concerned about potential quality differences between U.S.-made and Chinese-made vehicles, although Tesla has repeatedly demonstrated that the quality of its Chinese vehicles is on par with its American counterparts.

Finally, it should be noted that importing Chinese-made vehicles could also impact Tesla’s relationship with its U.S. suppliers and partners. Some may perceive this decision as a threat to the U.S. auto industry and a sign of Tesla’s disengagement from the United States.

In conclusion, the evidence suggests that Tesla is indeed importing Chinese-made Model 3s into the United States. This move has several benefits for the company, including increased production capacity and reduced costs. However, it is crucial for Tesla to consider the potential consequences of this strategy, including the impact on tax incentives, perceived product quality, and ethical and environmental concerns.

Tesla has not yet officially confirmed the importation of Chinese-made Model 3s, but the available evidence makes this increasingly plausible. As more information emerges, it will be interesting to see how the company handles this situation and whether it is able to leverage this strategy to drive growth while maintaining its reputation and meeting the expectations of its customers and partners.


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