Tesla Shanghai Gigafactory Completion Within 85 Days

Chen Mingbo, head of the Shanghai city economic and information technology commission, has stated that Tesla’s Shanghai Gigafactory should be completed in May 2019. This was reported by Reuters from statements made at a Parliamentary meeting in Beijing.

Chen also indicated that a production line will be operating before the end of 2019.

Previously, Elon Musk and Tesla have talked about completing a production line at the Shanghai Gigafactory by the end of 2019.

Elon said the Shanghai factory is the biggest variable for [Tesla] to get to 500,000-plus a year. Tesla has $2 billion in loans at about 3.9% interest rate from Chinese banks to build and ramp the Shanghai Gigafactory.

The completion of the factory could nearly halve the cost of Tesla Model 3 and Model Y electric cars into China. The current cost of a Tesla Model 3 RWD in China is ¥433,000 ($64,300). A base Model 3 built in a factory in China could cost $28,000 by avoiding tariffs and most taxes and because of 20% lower construction costs. The lower construction cost estimate was from Sandy Munro’s estimate after a detailed teardown of Tesla Model 3s.

There should be some near term tariff and tax relief from changes in China’s VAT and tariffs. China will be stimulated its economy with a 3% reduction in its value-added tax. It seems likely there will be a China-US trade deal. The trade deal could happen by the end of March and will likely reduce US and China tariffs.

Building Tesla is a site that publishes satellite photos of the Shanghai Gigafactory. The latest photo is from Feb 23, 2019. Currently, satellite photos are not showing any major interesting site changes.

There are various sources of regular videos posted of the construction. There is a lot of heavy truck, heavy equipment and pile drivers working at the site.

SOURCES- Youtube, Reuters, Sandy Munro Autoline After Hours

Written By Brian Wang. Nextbigfuture.com

7 thoughts on “Tesla Shanghai Gigafactory Completion Within 85 Days”

  1. Only 85 days to complete a factory? That makes me nervous. Remember the highway bridge in China that began to collapse within months of being built several years back? The workers back-stuffed the concrete with newspapers, cardboard and trash. Someone better watch the construction…

  2. Don’t forget those chinese workers would probably eat your grannies lap dog given a chance. Education pretty good, morals not so.

  3. My personal experience with Chinese construction is not good. I spent 4 field seasons in Mongolia (May to September). The first field season access was a dirt road. Then the next summer a Chinese road crew came through and build a road in about 3 months that saved us about 3 hours of travel time that would have been all on dirt roads.

    Two years later and 4 sizable rain storms. I literally watched 60-70% of the road get washed away, about 10-20% per storm, Four good storms was all it took and it was just as bad or worse than before. Chinese construction, it last you long long time.

  4. Sooo..China lends Elon $2.1 billion, gives him a thousand acres of scarce land and builds his super-factory in 90 days.

    They’ve got workers with 3 years more education than our workers. Entrepreneurial provincial governments competing for high-tech employers.

    How do we compete with that?

  5. Is this for the initial building, with continuing construction to build out additional manufacturing halls like Gigafactory 1, or are they building the whole shell in one go, effectively beating Gigafactory 1 to shell completion?

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