Tesla Delivers First China-Made Cars

Tesla delivers first cars made in China just a year after opening Shanghai Gigafactory

Dec. 30, 2019

Tesla (NASDAQ:TSLA) has announced the delivery of its first 15 cars made in China. The delivery took place in a ceremony today at its Shanghai Gigafactory, where 15 Model 3 sedans were delivered to employees who had pre-ordered the cars. 

The announcement comes almost a year to the day after it opened its first plant in China. The move has opened up the largest car market in the world, while simultaneously reducing the impact of the U.S.-China Trade War on the company. The new Gigafactory, according to China General Manager for Tesla Wang Hao, has achieved its production target of 1,000 vehicles per week. This bodes well for the electric vehicle and battery maker, who is set to start deliveries across mainland China before the end of January. 

Check out our piece on Tesla’s competitors.

Tesla’s China Efforts

Tesla’s efforts in the region are not confined to just the $2 billion Gigafactory however. The company has committed to doubling the number of service centers and fast-charging centers in China, as well as increasing after-sales service staff from 600 to 1,500. 

In a departure from its usual practices, the company is also partaking in a grand-scale marketing campaign, partnering with the Chinese tech giant Tencent to host parties in its showrooms, as well as hosting racing events to raise brand awareness. Tesla CEO Elon Musk prefers to rely on word-of-mouth and disdains ‘the typical trickery that is commonplace in advertising’, so a move to more traditional marketing methods is a significant step in adapting to the Chinese marketplace. Perhaps a tug-of-war with a Ford (NYSE:F) F150 or a smashed window gone viral wasn’t enough for the Chinese market. 

The efforts to which Tesla is going to in the Chinese market are indicative of the importance it places on the region. Branching out from its usual promotional practices and developing a solid relationship with the Chinese government, the Gigafactory is the first foreign-owned car plant in China, will bode well for sales in the region and display an adaptability which is paramount for surviving the tight-rope walk that is running a foreign business on Chinese soil. 

Read our article: Tesla: How much is hype, how much is real?

Tesla stock has gone on an incredible run at the end of 2019. If they hit and exceed their Chinese sales targets, this may continue long into the new year.

MyWallSt operates a full disclosure policy. MyWallSt staff currently hold long positions in Tesla. Read our full disclosure policy here.