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Tesla Giga Shanghai Finishes Steel Frame Construction For Model Y Building

by Ma. Claribelle Deveza May 07, 2020

Tesla-Giga-Shanghai-Construction

Tesla Giga Shanghai finished construction on Phase 2's steel frame, which will contain the China-made Model Y's assembly line. From drone-operator Wuwa Vision's latest aerial video, construction workers appear to have completed steel frames on both Phase 3 buildings. 

The next step for Giga Shanghai Phase 2 would be roof paving and placement of the floors. The buildings' construction seems to be moving faster than Phase 1 and 1.5. At the rate Giga Shanghai is moving, the buildings could be complete ahead of schedule. It is unclear whether that means Giga Shanghai could move up the production schedule of the MIC Model Y. However, Tesla Fremont was also way ahead of schedule with its Model Y production, and Giga Shanghai could follow its example. 

As of this writing, China is celebrating a holiday but has confirmed with Tesmanian that Giga Shanghai is maintaining operations. On the other hand, Tesla production line workers will be having an extended holiday break while the line is being maintained and adjusted. The recommended time to return to work was May 6, but production line workers were told to report back to Giga Shanghai on May 9. 

Demand for the MIC Model 3 has spiked lately, with Tesla experience centers reporting that orders are exceeding 1,000 a day. Consumers in the Chinese Market are mostly interested in the China-made Model 3 because of its recent price decrease. 

During the Q1 2020 Earnings Call, Tesla CEO Elon Musk and CFO Zachary Kirkhorn explained that Giga Shanghai has managed to decrease the cost of production while keeping the quality of the Model 3 intact, resulting in the price reduction. The MIC Model 3 now qualifies for China's updated NEV subsidy regulations, which capped with cars priced above the RMB¥300,000 mark.

With a lower price tag, the MIC Model 3 is cheaper than ever and is working its way towards being a genuinely affordable mass-market vehicle. Wuwa Vision estimated that only 30% of Giga Shanghai's Model 3 has localized parts. As Tesla continues to localize more of its supply chain for Giga Shanghai, the price of its vehicles in China will continue to drop. 

Featured Image Credit: Wuwa Vision/YouTube




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