What does the importation of Chinese Tesla Model 3s to Canada reveal?

The controversy is growing across the Atlantic with the import of Tesla Model 3 from China rather than from neighboring the United States.

Waiting times are too long on the other side of the Atlantic for consumers, frustrated to be pushed back behind China and Europe for the launch of the new Model 3. The industrial process does not convince them, regardless of the need to adapt assembly lines. America first.

Now, Tesla has launched into a race against the clock to fulfill its orders, but ramping up production of the Model 3 in American factories will still take many months. So, the idea came from China: to import some units…

Why are the Chinese happy?

But the main argument for these imports via Canada lies elsewhere. Sales of the Model 3 in Europe, which is produced in China, are continually declining. The disappearance of eco-bonuses in France and Germany, in particular, has dealt a serious blow to the absorption of Chinese-produced cars in these markets.

In China, Tesla sales also fell by 18.87% compared to February 2023, even as the trend suggests that more and more electric cars are being sold worldwide… and therefore also in China. Now, more Teslas are exported from China than sold on the domestic market, despite its population of 1.41 billion.

Tesla must thus quickly find markets for its Chinese production. Selling it on the North American market is no longer taboo. Similarly, the announcements of new factories in India or South America, which were thought to be imminent, are still on hold for now.

Has Tesla overexposed itself in recent years? Time will tell, but financial analysts criticize the American manufacturer for its heavy dependence on the success of the Model Y, while the rest of its catalog struggles with sales. Competition is becoming increasingly fierce, with traditional European and American manufacturers launching new, very stylish products (notably Renault R5), and Elon Musk’s popularity declining. In Europe and France in particular, price cuts are multiplying to maintain the pace. These are starting to signal serious concerns.

Regarding the Chinese units delivered to Canada, Tesla will now risk explaining to some of its discerning customers that their purchase did not especially come from the Fremont plant in California. Good luck.

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