Tesla plans to produce at least 1,000 Model 3 per week in the new plant by the end of this year, which is its main desire to increase sales in the world's largest automobile market and avoid higher import tariffs on American cars.
But, Tesla Gigafactory 3 is estimated to make 3,000 Model 3 units a week during its first production phase, said Grace Tao, the Vice President of Tesla Global during the 2019 Shanghai City Promotion Conference.
The plant’s mass production schedule is critical to Tesla’s plans.
“We aim to start some production in October, but the actual production volume depends on many factors including car orders we received, performance of newly hired workers, supply chain and so on,” a Tesla source.
This is 2nd time 🇨🇳 CCTV covers #GF3. Phase 1 project is only 1/3 of the total site space. The last one is Phase 3 expected to be completed by 2021. Acceptance process is being expedited by special joint task team authorized by local govt agency. Mass production will start in Dec pic.twitter.com/mUQjYTTvPq— Ray4️⃣Tesla⚡️🚘☀️🔋 (@ray4tesla) November 3, 2019
According to research firm LMC Automotive, Tesla performed better: China sales rose 98% in the first seven months of this year, thanks to strong demand for Model 3.
Tesla has embarked on a new phase of construction work at the plant as a sign of confidence in its Chinese strategy. New facilities will include the production of battery packs, according to company sources and documents.
The so-called 1.5-phase works, which have not previously been reported, include a production workshop and an energy center, construction documents showed. Construction is scheduled for completion by around the end of this year. Tesla also plans to hire battery-related technology engineers in Shanghai, according to his job postings.
Sunset Tesla Gigafactory 3. pic.twitter.com/lTZANfTpu7— Chao Zhou 👽 (@realChaoZhou) November 1, 2019
The plant, which Tesla says will be simplified and more cost-effective than its existing Model 3 line, will have 500,000 units of annual capacity when the second phase is completed, doubling the initial capacity of 250,000 units.
Shanghai authorities offered assistance to speed up construction, and on August 30, China excluded Tesla models from a 10% tax on car purchases.
State partners of the Tesla project include Shanghai Construction Group, China Construction Industrial & Energy Engineering Group, State Grid, Power Construction Corporation of China, and MinMetals’ Shanghai unit Baoye, according to multiple sources involved in the construction project.