Tesla Shanghai Exceeding Targets If September is Start of Production Ramp

Chinese media indicates that Phase 1 of the Tesla Shanghai will start production by the end of September. This would mean that production should get ramped to 3000 Model 3 cars per week by the end of this year.

It took about 8 months for Tesla’s first factory to reach about 3000 cars per week. The pace of construction in China clearly faster. Ramping up a second production line in the first half of 2020 now seems likely.

Tesla Shanghai could contribute 10,000 to 25,000 cars in the final quarter of 2019. The first half of 2020 could see 75,000 to 110,000 cars from the Shanghai factory.

Tesla’s second quarter investor letter said:
Gigafactory Shanghai continues to take shape, and in Q2, Tesla started to move machinery into the facility for the first phase of production there. This will be a simplified, more cost-effective version of our Model 3 line with capacity of 150,000 units per year – the second generation of the Model 3 production process. Just like in the US, the Model 3 base price of RMB 328,000 is consistent with its gaspowered competitors, even before gas savings and incentives. Given Chinese customers bought well over a half-million mid-sized premium sedans last year, this market poses a strong long-term opportunity for Tesla. Tesla is looking forward to starting production in China by the end of this year. Depending on the timing of the Gigafactory Shanghai ramp, Tesla continue to target production of over 500,000 vehicles globally in the 12-month period ending June 30, 2020.

SOURCES- Tesla
Written By Brian Wang, Nextbigfuture.com

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