Tesla slashes Model 3 and Model Y wait times in China

Last week, Tesla in Australia increased estimated delivery times on its Model Y Performance variant. At the end of the same week, Tesla significantly decreased the wait times on nearly all models it produces in Shanghai for its local market. 

What does the new China wait time look like and what could it mean for thousands of existing Tesla order holders here in Australia?

Delivery times cut to as little as seven days

Tesla on Friday cut their estimated delivery date on all Tesla models in their local market to start at one week. The local design studio revealed the estimated wait time on the left-hand drive Model Y RWD variant at “1 – 4 weeks”. 

This is the same for all Model Y variants including the Performance variant which last week saw its delivery times extend into the second quarter of 2023 here in Australia. 

The wait time on the third variant of the long-range Model Y, which we don’t currently have available in Australia, has also been cut from “10 – 14 weeks” to “1 – 10 weeks” as well.

What could these reduced delivery dates in China indicate for our local right-hand drive market?

Higher margins mean price cuts could be on the horizon

Over the last couple of months, Tesla has invested significantly in upgrading its Model Y and Model 3 production lines. This was seen by the huge increase in production in August. This means that the high production levels are here to stay as Tesla continues to scale.

Another point worth noting is that the margins are higher in China for Tesla than in other markets due to the reduced transportation costs of newly produced EVs. 

With price increases in China in the last 12 months and increased production capacity, Tesla is generating more revenue per vehicle sold today than they were at the same time last year.

An early indicator of Tesla expecting to reduce its prices in China is the recently announced insurance cuts of around $1,000 USD as reported by cnevpost. That’s for customers purchasing a Tesla in the second half of September. 

The price reduction will ensure the demand remains high for Tesla’s EVs in China which is the biggest EV market in the world.

Despite all of what’s happening in the Chinese market for Tesla, the delivery times are relatively high in Australia.

Delivery times unlikely to change in Australia

Australia has a large backlog of Tesla orders which Tesla is gradually catching up with. An example is how Tesla grew its overall fleet in NSW by 18% in August 2022. 

There are similar trends in other states like in Queensland where delivered Teslas trebled in August 2022 compared to the same time last year. Even with these significant jumps in Tesla deliveries around Australia, the demand remains high. 

Petrol prices remain high, excise reduction will come off by the end of this month and with many state incentives now solidified for new EV owners, the demand for efficient EVs is still rising.

This in some ways is positive for EV uptake as we look to close this quarter on a high. Next quarter will be even bigger for Tesla locally and the general EV uptake is only going in one direction.