Musk: Domestic Tesla parts localization by the end of the year up to 80% of the cost can be reduced.

On the Internet, there has always been a voice that Tesla’s domestic Model 3 is priced too dark, after the subsidy entry price is even 271.55 million yuan. Compared with domestic electric vehicles, the price is very low, the price into 200,000 is reasonable. But most consumers who buy cars clearly don’t think so, with the domestic Model 3, which starts at 270,000, selling more than 15,000 units last month, more than the second-to-fifth-place sales of domestic electric vehicles combined.

Domestic Model 3 in the end can the price into 200,000, we play here first?” “But it’s safe to say that the price of the domestic Model 3 can be lowered.

On July 23rd, Musk said in a conference call after Tesla’s second-quarter 2020 results that locally sourced parts could bring significant improvements to the cost of vehicles produced at its Shanghai plant.

At present, the proportion of local procurement is about 40%, and should reach 80% or more by the end of the year.

Mr Musk’s comments suggest that the current Chinese-made Tesla models will see lower manufacturing costs as the proportion of localized parts is supplied, and the market price of the vehiclewill will be further explored. It will also make Tesla models more competitive.

In addition, earlier this month, it was revealed in the media that power battery giant Ningde Times will provide power batteries to Tesla’s Shanghai super plant.

And in May, the Tesla Model 3, which uses lithium-ion phosphate batteries, made a new car declaration at the Ministry of Industry and Information Technology. Therefore, we expect that the lithium iron phosphate batteries used in Model 3 will be supplied by the Ningdh era.

Battery as the most expensive and important component of electric vehicles, its cost will directly drive down the cost of the entire vehicle. The cost of lithium iron phosphate, than the domestic Tesla Model 3 is currently used three-yuan lithium battery, has no small price advantage.

It is to be expected that with the arrival of the lithium-metal lithium-metal lithium-metal model 3, its entry price is expected to be lowered again.

Musk: Domestic Tesla parts localization by the end of the year up to 80% of the cost can be reduced.