China Ministry granted Tesla a certificate it needs to start production in the country. Tesla intends to produce at least 1,000 Model 3s a week from the Shanghai factory by the end of 2019.
Tesla China’s second-generation Model 3 production line will be at least 50% cheaper per unit of capacity than its Model 3-related lines in Fremont.
Tesla will start building a simplified, more cost-effective version of their Model 3 line with capacity of 150,000 units per year – the second generation of the Model 3 production process. Chinese customers bought well over a half-million mid-sized
premium sedans in 2019. Thi market poses a strong long-term opportunity for Tesla.
Tesla continues to target production of over 500,000 vehicles globally in the 12-month period ending June 30, 2020.
Tesla will start producing the Model Y in 2020. They forecast Model Y will be a more profitable product than the Model 3
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4 thoughts on “Tesla Given Approval to Start Shanghai Factory Production”
I wonder about the battery packs though. They do seem to be planning on locally sourced cells, which makes one wonder about the range offered. Though in theory it would be easier to access recharging networks at a higher density in china, even if they are not Tesla Superchargers, so range anxiety is less of an issue there?
Probably no advantage shipping them here. There are probably dozens of other countries where they can get full price and little or no tariff. Though no need at least initially. They should sell quite well in China. Maybe after 5 million cars it will be saturated enough to make other countries attractive.
The production line is 50% cheaper, not the car.
I am curious to see if any of these will ever be sold in the US. If its the case that they really cost 50% less, then even with a 25% tarrif they should be somewhere 25% less than the cars sold in the US. This would bring the cost down of the current pricing to near 30k even with a tariff.
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