Tesla Model Y moves closer to Model 3 as China quality issues loom

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The Tesla Model Y fell below $ 40,000 for the first time in the United States and appears on track to catch up with the Model 3 in sales in 2021. But problems in China could impact Model Y sales over there.

Tesla shipped a * 442,511 Model 3 and Model Y handset worldwide in 2020. And a growing share of that number is made up of Model Y sales. In the United States, the Model Y tends to catch up. model 3, because the latter’s sales figures are declining.

Tesla Model 3 sales in the United States in 2020 were 95,135, down 32% year-over-year, according to Experian (via Automotive News and InsideEVs). Meanwhile, Tesla Model Y sales have jumped to 71,344 – and it’s not even a full year as sales didn’t start until March.

The price has something to do with it. The Y model has dropped in price. The price was reduced once already in July by $ 3,000. And the latest cut from last week puts the Model Y below $ 40,000 for the first time.

  • Tesla Model Y standard range: now $ 39,990, was $ 41,990
  • Tesla Model 3 Standard Range Plus: Now $ 36,990, Was: $ 37,990

Red flags in China

As Model Y sales take off in the United States, Tesla faces quality issues in China, as the Wall Street Journal described in a video released on Saturday.

Sales in China generated more than $ 66 billion in revenue for Tesla in 2020 following the completion of construction of a manufacturing plant by the company. But in early 2021, Chinese regulators reported an “unusual increase in customer complaints about Tesla’s quality issues,” the Journal said.

Other reports, such as the one from Japan’s Nikkei titled “Tesla and Musk May Exhaust China Due to Quality Concerns”, point to quality issues in China.

Tesla executives in Shanghai and Beijing have been summoned to meet with the Chinese market regulator and four other central government departments over customer complaints, including unusual acceleration, battery fires, and problems updating the system. cars software …

—Nikkei, February 9, 2021

The Chinese-made Model 3 became the best-selling electric vehicle in China after its launch in early 2020, surpassing sales of Chinese brands like BYD.

Sales of the Model Y in China began earlier this year.

Most of the issues seem to center on the Model 3, but with sales of the Model Y taking off globally, this could become a concern for Chinese authorities as well.

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NOTES:

* Tesla does not split sales between Model 3 and Model Y.

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