Tesla (TSLA) on Monday began delivering its made-in-China Model Y SUVs, while Volkswagen (VWAGY) is set to start taking preorders for its less-expensive electric crossover ID.4 on Thursday. Tesla stock rose.
The Chinese market is key to Tesla’s success, and the maker of electric cars said the Model Y went to 10 cities in China at once but didn’t say how many were delivered.
Tesla, which delivered nearly 500,000 vehicles worldwide in 2020, aims for 20 million annually over the next decade.
The Model Y SUV, which was built in Shanghai, sells in China for $52,000 for the long-range, dual-motor version. The Performance model goes for $56,600.
Meanwhile, Volkswagen offers much cheaper alternatives. The lowest-priced ID.4 Crozz available for pre-order in China costs around $31,000 after subsidies. The priciest ID.4 costs about $38,000, less expensive than even Tesla’s Model 3, which has a shorter range. Tesla’s Model Y is not eligible for subsidies.
Volkswagen is making the ID.4 Crozz with Chinese partner FAW Group. The local partnership is one of several the German automaker has forged to expand its presence in China.
Volkswagen is also teaming up with SAIC Motor Corp. to build a model similar to the Crozz. And VW has a 75% stake in Anhui Automotive, with which it plans to start producing electric cars in 2023.