Tesla Model 3’s 2019 China registrations show 161% increase year-over-year

Tesla posted 6,643 new vehicle registrations in China last December, helping push the company’s 2019 total to 42,715. This corresponds to a 161% increase compared to 2018, when the Palo Alto, California-based car manufacturer hit the 16,360 mark in China.

According to the data from China Automotive Information data reported by Bloomberg, the new vehicle registrations in December includes 30 Made-in-China Model 3s, as well as a slight increase from November’s 5,597 vehicles. The state-backed agency based its data on purchases of car insurance.

Seeing the rise in new Tesla vehicle registrations in the biggest automotive market in the world is quite an achievement for Elon Musk’s car brand as China has been experiencing a car market slump in the past two years.

Research firm Piper Sandler recognized the big upside of Tesla in China and it declared recently that the market has been underestimating the potential growth of Tesla in the country.

“If Tesla’s Model 3 market share in the United States can be replicated in China – and if this logic extends also to Model Y – then Tesla’s annual volume in China alone would eventually exceed 650k units,” director and senior analyst Alexander Potter said.

Tesla delivered the first batch of its MIC Model 3 units to its employees in December and made the first public deliveries on Jan. 7, exactly a year after its Gigafactory 3 in Shanghai broke ground. The company has also formally launched its Model Y program in the country.

Likewise, Musk announced during the recent Gigafactory 3 event that Tesla will create a design and R&D center in China where Chinese-style Teslas will be created. The vehicles from the said center will not only be distributed locally but to the rest of the world as well.

Tesla also slashed the price of the MIC Model 3 that resulted in a surge in demand. China-based Chuancai Securities sees the huge potential of the Model 3 as a cash cow for Tesla as it estimates the gross margin of the company for the mass-produced electric sedan to increase to as high as 40%. According to the equity firm, it can achieve this once Tesla improves localization of its parts that will push down the expenses of raw materials to about 10 to 20%.

The Gigafactory 3 in Shanghai has hit a run-rate of 3,000 vehicles per week and will try to hit that goal as it adds more workers to the production line.

Tesla Model 3’s 2019 China registrations show 161% increase year-over-year

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2021 Genesis GV80, 2021 GMC Yukon, 2022 Chevrolet Corvette Z06: The Week In Reverse

The 2021 Genesis GV80 broke cover and we drove it; the sheet came off the 2021 GMC Yukon and we took a spin in the snow; and the 2022 Chevrolet Corvette Z06 was spotted. It’s the Week in Reverse, right here at Motor Authority.

The 2021 Genesis GV80 was revealed and it’s set to become the automaker’s most-important and best-selling vehicle the instant it goes on sale in the U.S. later in 2020. We slid behind the wheel for a quick drive and found it falls somewhere between the Volvo XC90 and Audi Q7 with a planted, smooth ride aided by advanced suspension technology that reads the road ahead. It strikes a desirable balance between style and comfort that should please consumers.

Ford teased the 2021 Bronco with a video of a test mule tackling an off-road course. The mule is crude with bodywork cobbled together from Ranger pickup body pieces, but the suspension, tires, and running gear is all Bronco. The legendary SUV is rumored to have a Dana rear axle, and custom Fox shocks are likely sitting deep within those wheelwells. Expect the Bronco to feature a retro design when it’s unveiled later in 2020.

The 2021 GMC Yukon made its formal debut in the snow of Colorado. Just before the sheet was pulled off the large people mover GMC allowed us a brief drive. We found that the limited-slip rear differential can find traction even if one tire is on pavement and the other is on ice. The latest adaptive dampers smooth over choppy snow with help from a quicker electrical architecture. When the Yukon goes on sale, it’ll be fit for a family cruise across the country.

The iconic Bentley Mulsanne is leaving this world. The British automaker announced the final run of the large luxury sedan along with its amazing L-Series V-8 engine. The 6.75-liter V-8 delivers up to 530 horsepower and 811 pound-feet of torque thanks to a pair of turbochargers, and it moves the car like it’s the smoothest freight train in the world. A final run of Mulsannes is scheduled to be built this spring, after which the Flying Spur will take over as the automaker’s flagship and its only sedan.

The mid-engine C8 2020 Chevrolet Corvette hasn’t even launched yet and we’ve already spotted what is believed to be the Z06 model. The prototype, caught undergoing cold-weather testing on snow and ice, was completely covered in camoflauge, but what couldn’t be hidden were its extra wide rear hips and massive rear tires. The car looks menacing, and the camo likely hid gaping air ducts on the sides to suck in a ton of air to feed a flat-crank V-8 with more than 500 horsepower.

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Tesla forces Volkswagen CEO to act fast and avoid similar fate as Nokia

Will automotive giant Volkswagen have the same fate as Finnish cellphone manufacturer Nokia? VW CEO Herbert Diess says that the carmaker is heading that way if it doesn’t do anything soon and quickly.

Even for a tried and tested automotive brand such as Volkswagen, things can be overwhelming. Frightening, in fact, if its chief executive compares it to a once-dominant phone brand that was not able to keep up with the times.

Germany who wants to switch to greener vehicles and lower its emissions footprint implemented tighter rules following Volkswagen’s admission in 2015 that it cheated with emission tests. The “Dieselgate” problem though is just the tip of the iceberg. The carmaker has no choice but to comply with the stringent guidelines and needs to develop electric vehicles and this requires the company to revamp its assets, cut costs, and catch up with needed technologies.

“The big question is: Are we fast enough? If we continue at our current speed, it is going to be very tough. In summary, this is probably the most difficult challenge Volkswagen has ever faced,” Deiss told his senior managers during a global board meeting as reported by Reuters.

Last September, the environment committee of the European parliament pushed to cut carbon dioxide emissions by 45 percent from 2021 through 2030 and to have 20 percent quota of electric vehicles come 2025 and by 50 percent in 2030. If Volkswagen misses these quotas in 2021, PA Consulting firm estimates that Volkswagen might face a fine of as much as 4.5 billion euros.

Just like what Diess emphasized, it is not an easy task and the brand needs to improve its productivity and lower its costs. It’s a massive overhaul that will push the German carmaker to refocus so they can produce EVs and batteries to comply with set emission rules and while keeping profit margins.

Analysts from consulting firm Wood Mackenzie predicts that Volkswagen could be the biggest EV manufacturer by 2030, producing 14 to 16 million green cars. However, this will be a long shot since Volkswagen would need to take a 53 percent share of the global market for electric cars from now and through the next eight years. It also needs to produce about 57 percent of battery packs for EVs.

There’s another problem for Volkswagen. One that might force them to be a Nokia — Tesla.

Tesla has been pushing the right buttons across markets. It became the most valuable car brand in the world eclipsing other American automotive predecessors and has been converting naysayers to believers of late.

The Silicon Valley-based electric car manufacturer has set its foot on Volkwagen’s backyard. It’s moving fast to start building its Gigafactory 4 in Brandenburg that will produce 150,000 EVs initially and will eventually ramp up to 500,000 units per year. Once Model Ys and Model 3s roll out of GF4, it will surely bite a good chunk of Volkswagens market share in Germany and the rest of the region. Tesla would have thrown a ton of punches to knockdown (or knockout) Volkswagen and other German car brands before they even know it. Elon Musk and his team already have the technologies to dominate the EV market.

Likewise, Tesla has established a strong presence in China with its Gigafactory 3 in Shanghai and the Chinese government has been pouring its support to Tesla, seeing the brand as a catalyst for the EV industry. Recently, Tesla was able to cut the price of locally-made Model 3s and the mass-produced sedan will most likely be a cash cow for Musk’s car brand. It has also pushed the gear to design Chinese-style Teslas, perhaps entry-level cars that it needs to even get a better share of the pie. And as the Tesla chief said, these cars will not be only for China but for the rest of the globe.

If Volkswagen doesn’t want to be a Nokia, it has to be smart and lightning-quick to catch and outplay Tesla in a game that the latter knows by heart. Volkswagen has no room to commit errors in the EV game. But for now, Tesla is in a very strong position and Deiss and the rest of his team can only look and scratch their heads.

Tesla forces Volkswagen CEO to act fast and avoid similar fate as Nokia

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