The development of Tesla's Gigafactory 3 continues to move at the fastest pace with the latest reports that electrical car…
The development of Tesla’s Gigafactory 3 continues to move at the fastest pace with the latest reports that electrical car production in the upcoming facility could begin in the second half of 2019. Provided there are no delays in construction by the factory itself, and provided that Tesla can send and set up its production lines on time, later in the year 2019, could signal the start of model 3 production in China.
Local media outlet Caijing.com noted that the plant is about to start building, especially since 864,885 square meters of land in Lingang Industrial Zone has been planned. In a post in its official account WeChat the Shanghai government further explained that Mayor Ying Yong and Deputy Mayor Wu Qing met Tesla’s leader in China while controlling the company’s new vehicles as model 3. During his visit, Shanghai officials urged the partners in the project to accelerate the construction of Gigafactory 3 even more.
Shanghai officials inspect Tesla Model 3. [Credit: Shanghai Gov’t/WeChat]
The progress of Tesla’s Gigafactory 3 has been nothing less than remarkable. When Elon Musk announced the timeline of the project earlier this year, the company’s critics were immediately skeptical. Tesla initially noted that the Gigafactory 3 automotive production would start approximately two years after the construction of the plant began, ramping to an effect of 500,000 vehicles a year 2-3 years later. The timeline, which could only be described as classic Elon Musk, was doubtfully met by Wall Street. Consumer Edge Research senior auto analyst James Albertine, for one, dubbed Gigafactory 3’s timeline as “not feasible”.
Although the first timeline was already met by Wall Street eyebrows, Tesla announced an even more aggressive target for the project after its starring third quarter. In its Q3 2019 report on vehicle manufacturing and delivery, Tesla noted that the accelerated construction of Gigafactory 3. The company also noted that it expects the construction of the plant to be fast and capital efficient thanks to lessons learned from the Model 3 ramp in the United States.
In addition to the lessons from the Model 3 ramp, the Chinese government is due to support Tesla and the upcoming factory. Local government media have been openly supportive of the project and Tesla as a whole and the government has even bowed its rules by allowing the electric car manufacturer to become sole owner of Gigafactory 3. The government’s support became particularly apparent when Tesla disagreed in its bid for an 864,885 square meters of land in the Shanghai Lingang area, as well as in the fast release of low-interest loans for the project from the local banks of Shanghai.
November 29, 2018, Tesla Direct Experience Center official grand opening at Wenzhou Fortune Experience Center. So far, Tesla has more than 44 direct experience centers and service centers in mainland China.
– Vincent (@ vincent13031925) November 30, 2018
The Chinese The government’s favor for Tesla has enabled the company to maintain a strong brand in the country despite challenges that form an import duty of 40% Model S and Model X because of the China-US trade war. Even before US President Donald Trump announced on Twitter that the Chinese government has agreed to “reduce and remove” import duties on vehicles from the United States, Teslas electric cars, especially model 3, have given much interest to Chinese consumers. This interest was evident during a new job fair in Lingang Industrial Zone when Tesla was forced to extend its employment hours due to the overwhelming number of applicants for work at Gigafactory 3.
Given China’s reputation for building large facilities In record time, one is The first model 3 production run in Gigafactory 3 in the second half of 2019 is actually quite feasible. With the country’s ability to construct the plant quickly, the start of model 3 production in China next year is likely to be limited only by Tesla’s ability to send and set its vehicle production lines in time. If Tesla can achieve this, it is very little that could lead to Gigafactory 3, which produces Model 3 for the local Chinese market before 2019 ends.
Tesla has the potential to be a force in China’s automotive market, especially as the country is aggressively driving the electricity generation of its transport sector. China is about to sell 2 million electric cars by 2020 and achieve an ICE to EV ratio of 1: 1 by 2030. The Teslas Gigafactory 3, which is expected to produce 500,000 cars a year, could go far to help the country achieve Their own ambitious electric vehicle targets, especially when the company is expected to produce its two mass market vehicles in the plant – Model 3 Sedan and Model Y SUV.