Giga Shanghai

Tesla Giga Shanghai's Model 3 Now Produced With Some Of Model Y's Upgraded Components


Tesla Gigafactory Shanghai has released MIC Model 3 vehicles that contain Model Y components in a showroom in China. The Model 3 and Model Y share at least 70%-75% of their parts. Sandy Munro's Model Y teardown has supported this claim, with the auto expert spotting some Model 3 parts in his Model Y.

However, seeing Model Y parts in a newly-minted Model 3 vehicle is unprecedented or at least quite rare. Model Y parts in the Model 3 may be an expected progression for Tesla since the former probably has components that could significantly improve the EV automaker's affordable sedan. 

According to Tesla enthusiast, Jay in Shanghai, a showroom in China have displayed freshly-produced MIC Model 3 units from Gigafactory Shanghai. These units are unique since they feature new parts, including three USB Type C ports and an OEM wireless charging pad similar to those found in the Model Y.

As of this writing, Tesla China has not raised the price of Giga Shanghai's MIC Model 3 SR+, nor does it seem to be preparing to do so in the future. It is unclear whether the new cars displayed were the SR+ or Long Range variants, but it is clear that there were improvements to Tesla's Made-in-China Model 3.

If the price of the MIC Model 3 does not change, it could attest to the fact that Tesla's vehicles continue to improve along with its production costs and gross margins. For Q1 2020, Tesla reported impressive gross margins of 25.5%, which was partially credited to Giga Shanghai's operations, according to CEO Elon Musk and CFO Zachary Kirkhorn. 

"Our Shanghai Model 3 margins improved dramatically since Q4 of last year, nearing equivalents of Model 3's built in Fremont. This is despite not yet running at full capacity, while also managing through the production shutdown in early February," said Kirkhorn.

Later Elon Musk added, "Yeah. So we are making rapid progress on lowering the production cost in China. And we're actually excited to announce on this call that we will be reducing the price of the standard range Model 3 basically tomorrow, China time. So the day after tomorrow, California time, but tomorrow, China time. And there will be a price below the subsidy limit. And we feel confident that that's, will still be a vehicle that delivers a good gross margin."

The newly-minted MIC Model 3 units also revealed that Giga Shanghai has access to Model Y parts and now has experience installing them into Tesla vehicles. As such, Giga Shanghai's MIC Model Y ramp could progress much faster and smoother than initially anticipated.

Gigafactory Shanghai's Model Y factory could be fully built by the end of the year at the pace construction is currently moving. At this rate, Giga Shanghai's MIC Model Y could start deliveries as early as January 2021. It would be fitting if MIC Model Y deliveries kicked off in January, given that Tesla China has a history of celebrating the month--and exact date--Elon Musk had announced the construction of Giga Shanghai.  

Featured Image Credit: Jay in Shanghai/Twitter

About the Author

Ma. Claribelle Deveza

Ma. Claribelle Deveza

Longtime writer and news/book editor. Writing about Tesla allows me to contribute something good to the world, while doing something I love.

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