Tesla eyes Asian mkts with upcoming low-cost model
Elon Musk, is eyeing new opportunities in Asia with its cutting-edge ‘new-gen platform’, which seeks to introduce more budget-friendly compact and sub-compact electric vehicles (EV) that have the potential to drive large volumes across developing Southeast Asian markets. According to Tesla’s Q2 investor deck, it is working on developing its next-generation EV platform across multiple locations. Industry insiders said the new product, which is projected to be priced around $25,000, may debut by 2023-end, although some analysts expect a 2025 launch.
Currently, Tesla’s Shanghai gigafactory, the main export hub and its largest manufacturing facility, ships to Thailand and Singapore and will soon start exporting to Malaysia. Nonetheless, Tesla faces formidable competition in these territories from China’s BYD, which has a dominant position in the emerging EV market in Malaysia and has outperformed Japanese EV makers in this region. Tesla’s access to the markets is via exports, as low volumes do not make it a viable option to set up integrated gigafactories in this region.
Besides, Shanghai’s 750,000-unit gigafactory, which produces Models 3 and Y, has enough room to ship vehicles to the neighbouring markets. In its 19 July report, Barclays said it expects Tesla’s upcoming affordable EV to account for 275,000 deliveries in 2026 and to eventually become twice as large in sales compared to its present volume driver, the Model Y, at 3.5 million units annually by 2030. This is despite the fact that Model Y is estimated to clock 1.5 million units in sales, and Model 3 990,000 units.
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