Tesla Gigafactory 3 Shanghai has finished the foundation for its Phase 2A building. A recent video by drone-operator, Jason Yang, revealed that the piling for Giga Shanghai’s Phase 2B building has already started as well. At the rate Giga Shanghai’s construction is moving, Yang predicted that all of Phase II could be finished by May 2020. 

In his video, Yang refers to Phase II as Phase 3, separating its two parts into 3A and 3B. However, as discussed in a previous Tesmanian article, some Giga Shanghai observers refer to the section as Phase II because they consider the second building on the lot as Phase 1.5. The second building finished in GF3’s lot was Tesla China’s battery and powertrain facility.

One of the buildings in Phase II will reportedly house the production line for the Made-in-China Model Y. Tesla China’s Model Y program kicked off at the beginning of this year during the MIC Model 3 delivery event with Elon Musk. 

Giga Shanghai Phase II is much bigger than Phase I, which further supports the theory that it will be used for Model Y production. Elon Musk has predicted that Tesla’s SUV crossover will outsell the Models S, 3, and X combined, and it is highly probable in the Chinese auto market. 

On a global scale, the SUV segment has continued to see exponential growth. SUV Market Reports theorized that the SUV market size would grow from USD$25.83 million in 2017 to USD$35.30 million by 2023 at an estimated compound annual growth rate (CAGR) of 5.35%. The Chinese auto market’s demand for SUVs has significantly contributed to those numbers and will continue to do so in the future.

At present, Tesla China’s plans for the second building of Phase II is unknown. Although there are some possibilities. The second building could house the assembly line for the MIC Model Y’s powertrain and battery facility, similar to Phase 1.5. 

Tesla Giga Shanghai Production Rate Exceed 3K Per Week, Phase 2 Continues Rapidly https://t.co/6gf0n1dLHH pic.twitter.com/BhqgrI51dF

— Tesmanian.com (@Tesmanian_com) March 22, 2020

There are reports that MIC Model Y production could start later this year at Giga Shanghai. However, plans to manufacture the locally-made Model 3 Long Range RWD was recently approved, and Tesla China may want to ramp production for that model before the Model Y. 

That being said, Tesla’s facility in China has already exceeded a 3K production rate for the MIC Model 3 Standard Range Plus within a short amount of time despite the global pandemic. So, MIC Model Y production by the end of the year may not be entirely improbable.

Featured Image Credit: Jason Yang/YouTube

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