Tesla

Every company has a different position and path, and what Tesla is doing may not be right for Nio, according to William Li, founder, chairman and CEO of the Chinese electric car company.

"We presume the cause of the fire was the impact on the vehicle's high-voltage battery at the bottom triggered internal cell damage and short circuit," Tesla said.

Tesla said the company has been investing resources in localizing its China business chain. To that end, the company is also continuing to attract outstanding domestic talent in body design, vehicle engineering and development, and Autopilot automated assisted driving.

Tesla says its move regarding the Model Y in China is not a price cut, but the first sale of the China-made version, according to Beijing News.

Tesla said on Weibo on Monday that the first China-made Model Y deliveries began today in cities including Shanghai, Hangzhou, Nanjing, Suzhou, Wuhan, Hefei, Wenzhou, Wuxi, Changzhou, and Ningbo.

The Model 3 starts at RMB 249,900 ($38,564) for the standard range version and RMB 339,900 for the performance version.

Tesla's Shanghai plant has been under tight watch for its use of local parts, as Tesla claims to price its vehicles based on costs, and changes in the use of local parts directly affect the pricing of China-made Tesla vehicles.

Emptying the inventory is relatively not too difficult as Tesla has not produced new Model S and Model X vehicles for almost a month due to the production line shutdown of its flagship model and SUV.

China's new energy vehicle market experienced a hot 2020, though that hotness was not equal, with certain companies appearing to be hotter than others.

Tesla China's website shows that if consumers order the Model Y now, the long-range version is expected to be delivered in the second quarter of this year.