From Tesla's pricing strategy overseas, the price difference between Model Y and Model 3 is only 6-9%, so after the China-made Model Y goes into production, the Model Y's entry price is expected to drop to 275,000 yuan ($40,860), Tianfeng Securities said in a recent research paper.

Tianfeng said it expects the China-made Model Y to sell 30,000 units a month and 360,000 units a year after it goes into mass production.

Overall Tesla sales in 2021 are expected to reach 880,000 units, up 76 percent year-on-year, while sales in 2022 will reach 1.28 million units, up 45 percent year-on-year, Tianfeng said.

The Model Y has become Tesla's second most-delivered model this year, behind the Model 3. Deliveries in the first eight months of the year were higher than both the Model S and Model X. The Model Y is the second most-delivered model of the year, behind the Model 3, according to data released by the research firm.

On October 1, Tesla's China website shows that the China-made Model 3 standard range upgrade is priced at RMB 249,900 after subsidies, and the China-made Model 3 long-range rear-wheel drive is priced at RMB 309,900 after subsidies.

The two models are marked down by RMB 21,650,000 and RMB 34,150,000, respectively, and the Tesla Model 3 has been marked down by nearly RMB 80,000 over the past year and a half since it was first announced at RMB 328,000 in May last year.