For domestic consumers, Tesla's market price in China is still relatively affordable. Tesla's current reputation in the international market is not very good, a series of negative impacts are plaguing him, in mainland China to build a factory, can be said to be Tesla in order to salvage the market reputation of a decision, but the creation of a reputation or rely on excellent quality and service, which, Tesla how to do, but also need to be the market to prove.
Tesla should have long been aiming at the Chinese market, China has just canceled the new energy automobile foreign capital stock restrictions, Tesla in the new quarterly earnings meeting announced the construction of a super factory in China information. With this favorable news to pull Tesla's global influence, not to mention that China has the largest consumer market, it's not surprising that Tesla wants a piece of the pie.
In recent years, China's auto industry has been in a very bad shape, and even though the major automakers have launched a variety of incentives, sales don't seem to have improved significantly. Tesla's entry into the Chinese market is also risky, although it will attract a significant portion of consumers with its international brand and unique design of its models, but the downturn in the auto industry is bound to have an impact on it.
The Shanghai municipal government is very supportive of innovation and the development of new-energy vehicles, and of course is very optimistic about Tesla's prospects for building a factory in Shanghai. For Chinese consumers, Tesla's prices will be very popular once they drop, and it seems that Tesla intends to adopt such pricing tactics to enlist Chinese consumers and realize its market share in China.