China is starting to show an insatiable demand for Tesla

Tesla Model 3 and Model X demand is skyrocketing in China, especially since the Chinese government gave a 10% car purchase tax exemption to Tesla last month — a sign of aggressive electric vehicle policy implementation by China.

Above: A large number of Tesla Model 3, Model S, and Model X vehicles outside the Beijing Department of Motor Vehicles (Source: Jay In Shanghai)

There are several reports coming out of Beijing and Shanghai about massive amounts of deliveries happening via Chinese Tesla stores. As evidenced in the featured image above, Teslas flooded Beijing's Department of Motor Vehicles in order to obtain license plates. In addition, below is a short video from outside the Beijing DMV that shows a long line of Model 3s at the facility.

Meanwhile, Chao Zhou is consistently updating the Tesla community about Gigafactory 3 developments by reporting directly from the ground. Chao recently visited the Tesla Shanghai Jinqiao Store and the number of Model 3 sales he saw at the location was nothing short of astonishing.

According to Chao’s meeting with Tesla staff at the Jinqiao Store, a surge in Model 3 orders occurred post-tax exemption. Crunching the numbers, the Jinqiao Tesla Store alone is expected to accumulate 3,000 orders by the end of this month.

It's quite conceivable that Tesla China will deliver these cars by the end of October, which should bolster Tesla’s Q4 delivery report.

In addition, large numbers of Model X vehicles also await delivery — proof of the popularity of Tesla's SUV in China. It turns out even Elon Musk used a Model X convoy on his Shanghai visit recently.

Above: Recent photo from Tesla's Beijing Delivery Center (Source: Vincent)

China's 10% tax exemption drops the purchase price of the Tesla's electric cars by up to 99,000 yuan ($13,957.82), according to Reuters. Needless to say, this big discount is attracting a lot of attention from Chinese auto buyers searching for a reliable, premium electric car.

The Tesla China website states that the maximum tax break obtainable on a Model 3 is ¥52,000 ($7,345). This tax break can be realized on Model 3's highest priced variant. For more details, Tesla's website has a tax incentive info page covering the policy details of every Chinese region.

And it's not just new Teslas in high demand. According to Quartz, "Nobody wants a used electric vehicle in China, unless it’s a Tesla." It's reported that, "A Tesla’s residual value—basically the future value of a car after a certain amount of use—at one year is more than 70% of its original price, far higher than the value of any Chinese EV model at the same mark."

Above: Tesla's traction in China (YouTube: CNA)

Meanwhile, Tesla's Gigafactory 3 buildout remains in 'ludicrous' mode. The company's Model 3 assembly lines are already in place and other parts of the huge complex are nearing completion.

According to Reuters, "Tesla Inc’s China factory aims to start production this month." Furthermore, CleanTechnica reports, "Tesla will cut off orders of the Model 3 Standard Range after October 13th in anticipation of the start of production at Gigafactory 3 in Shanghai, China."

To that end, in the coming months, Tesla China customers will be able to get their Model 3s delivered far quicker (in larger quantities) from Shanghai's Gigafactory 3.

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Written by: Iqtidar Ali. An earlier version of this article was originally published on X Auto.