Construction at Tesla’s China Factory to Begin Soon

Tesla could start producing cars in China as soon as the second half of next year, the Shanghai government said Wednesday.

An official WeChat post from the government said that land work has been completed and construction is about to begin.

Tesla is looking to increase production, while also more efficiently reaching global markets. The company currently operates its only car-assembly plant in Fremont, Calif., and a giant battery factory in Nevada. The company has said a European plant will follow the China plant and could be announced by the end of the year.

Tesla acquired in October an 864,885-square meter plot in Shanghai’s Lingang area. Tesla hopes to ramp up to as many as 500,000 vehicles a year about two to three years after the factory opens.

 

[electracity]

Tesla is most likely attempting to assemble cars in China late next year. Tesla currently assembles cars in Europe.

 

[mongo]

Tesla is most likely attempting to assemble cars in China late next year. Tesla currently assembles cars in Europe.

If all Tesla wanted to do was final assembly, they would just need an existing building or a concrete pad and a tent. That would not take 6+ months to set up. It also would not help increase the production counts, since it would rely on the existing body and paint lines.

 

[Jeff Hudson]

Tesla is most likely attempting to assemble cars in China late next year. Tesla currently assembles cars in Europe.

Your comment does not match what Tesla has repeatedly stated about the mission of Teslas' intended manufacturing expansion to China. While you are correct about Tesla presently assembling cars in Europe that too is planned to change in the near future when Tesla announces plans to construct a Gigafactory 4 somewhere in Europe. The China Tesla factory referred to in this article is slated to be called Gigafactory 3.

I am most curious about the Tesla / Panasonic partnership plans for continuing their collaboration in Gigafactory 3.

 

[electracity]

Your comment does not match what Tesla has repeatedly stated about the mission of Teslas' intended manufacturing expansion to China. While you are correct about Tesla presently assembling cars in Europe that too is planned to change in the near future when Tesla announces plans to construct a Gigafactory 4 somewhere in Europe. The China Tesla factory referred to in this article is slated to be called Gigafactory 3.

I didn't say that they are not building GF3 in China. I'm saying that in 2019 they are doing general assembly. The second task that may happen in China is adding Chinese battery cells to packs sent from Sparks.

I don't know what Tariff rules Tesla faces in China. But simply using Chinese made battery cells would increas local content a lot.

I'm sure they looked at having seats and other coachwork pieces made by a local vendor. That stuff could be ready by the end of next year.

 

[Jeff Hudson]

I didn't say that they are not building GF3 in China. I'm saying that in 2019 they are doing general assembly. The second task that may happen in China is adding Chinese battery cells to packs sent from Sparks.

I don't know what Tariff rules Tesla faces in China. But simply using Chinese made battery cells would increas local content a lot.

I'm sure they looked at having seats and other coachwork pieces made by a local vendor. That stuff could be ready by the end of next year.

I apologize. It seems I misunderstood the sentiment of your original post. What you've restated may come to pass although IMO simple assembly would unnecessarily complicate the overall startup process. If the battery cells are produced by a China manufacturing partner in favor of another Panasonic partnership that will be big news. I agree wholeheartedly the seats as well as plenty of other parts could/should be sourced from local China suppliers as much as Tesla can arrange.

 

[markwj]

I'd be shocked if it was up and running that quick. Usual practice in China is you try to do something, then an official says you need a permit for that, so you apply, and then wait months going back and forth trying to get the permit. Finally, you have a meeting with someone higher up, who proclaims "crazy, he doesn't need that permit", and you are good to go... until the next time.

 

[TechOps]

I see this as a major existential threat to Tesla. I expect to see Tesla technologies and complex design innovations in a lot of new Chinese EVs starting around 2020-21.

 

[mongo]

I see this as a major existential threat to Tesla. I expect to see Tesla technologies and complex design innovations in a lot of new Chinese EVs starting around 2020-21.

Why?

Tesla is under no requirements to operate this as joint venture with China.
Suppliers would be a better source of tech leakage than the plant itself.
Further, they already open sourced their patent portfolio
Tesla's master plan would love for other companies to make more compelling EVs.

To mostly quote Elon (not checking exact wording)
Moats are lame.