China Specialist, Auto and Industrial Specialist

Victoria Li

20 years experience as sell side analyst focusing on China's Industrial and Auto sectors

Tesla: Gauging Interest on Locally Produced Cars in China

China Auto: July NEV PV Sales Declined, Earlier than Expected

China NEV: Channel Check Feedback Suggests NEV PV Sales Growth Might Turn Negative

Thematic (Sector/Industry)

China Auto components / Thematic (Sector/Industry)

On Dec 30th, 2019, domestically produced Tesla 3 was launched in China.  Tesla management claims that current localisation rate of cars from Tesla Shanghai is 30%, and it will be raised to 80% by mid-2020 and then 100% by the end of 2020. Meanwhile, Tesla Shanghai reached 3000 units per week capacity, and targets to deliver 100,000 Model 3 cars in 2020.Tesla Shanghai's production increase with full capacity utilisation and increasing components localisation would become key earnings drivers of its components' suppliers in China. Ningob Xusheng (603305.CH) and Ningbo Tuopu (601689.CH) might be the two biggest beneficiaries in China market.

On Dec 30th, 2019, domestically produced Tesla 3 was launched in China.  Tesla management claims that current localisation rate of cars from Tesla Shanghai is 30%, and it will be raised to 80% by mid-2020 and then 100% by the end of 2020. Meanwhile, Tesla Shanghai reached 3000 units per week capacity, and targets to deliver 100,000 Model 3 cars in 2020.Tesla Shanghai's production increase with full capacity utilisation and increasing components localisation would become key earnings drivers of its components' suppliers in China. Ningob Xusheng (603305.CH) and Ningbo Tuopu (601689.CH) might be the two biggest beneficiaries in China market.

Key Beneficiaries of Tesla Shanghai Ramping Up