Tesla Gigafactory 3: Facts & Videos From Groundbreaking

JAN 7 2019 BY MARK KANE 30

Up to 500,000 base versions of Tesla Model 3/Y per year for China and some other Asian markets.

On Monday, Tesla CEO Elon Musk was busy at the groundbreaking ceremony for the Tesla Gigafactory 3 in Shanghai, joined by Shanghai Mayor Ying Yong.

Here we sum up all the facts that we know so far about the second car manufacturing plant, which Tesla intends to build in its second-biggest market (China probably has the potential to maybe be #1 at some point in the future).

According to Elon Musk, the facility will serve the greater China region and produce only affordable versions of the Tesla Model 3 and upcoming Tesla Model Y. Additionally, having the first automotive wholly-owned subsidiary in China should help Tesla from losing its latest know-how to competitors.

On the other hand, local production of the affordable, most popular version will be important in the case of trade wars or significant changes in exchange rates.

Tesla Gigafactory 3 facts:

  • location: Shanghai, China
  • wholly-owned subsidiary (not joint venture)
  • construction is underway
  • initial construction should be completed by the end of summer
  • production of cars should start in second-half of 2019 (volume production from 2020)
  • expected total investment: about $2 billion
  • purpose: production of affordable versions of Model 3/Model Y for greater China region (higher cost versions of 3/Y and all S/X to be produced in the U.S.)
  • battery packs will be assembled using lithium-ion cells from various suppliers, including Panasonic
  • expected volume: 500,000 per year

Videos from groundbreaking:

Categories: China, Tesla

Tags: , , , ,

Leave a Reply

30 Comments on "Tesla Gigafactory 3: Facts & Videos From Groundbreaking"

newest oldest most voted

Looks like it is always raining int that area

They have a tent. Time to start production!!

Actually I thought the same too – “they have a tent!”

Thats the level of poor quality of second class Model 3. No one is buying that nonsense in Shanghai, high quality standards. It’s a reject fail Eject button like iPhone XR

I presume the screen name “Logic” is ironic? 🙄

Why are you even trying to propagandize on an EV-focused website? You’re not in your echo chamber over here.

Lucky the Chinese gov’t didn’t detain Elon after the Huawei CFO Meng Wanzhou fiasco in North America!

LMAO at you loser Spiegel, back to Stinking Alpha.

Only 8 piling rigs? Hope more are on the way… there is a lot of site prep needed…

Does that mean affordable versions of model 3 and y will be imported from China into USA?

No

According to Tesla’s announced plans, the cars made at the Shanghai Gigafactory will be for the Chinese market only. Of course plans can change, but don’t expect to see Tesla cars made in China shipped to any first-world countries anytime within the next few years, at least.

Do you consider China to NOT be a first-world country?

No, that’s not what you are saying.

Perhaps you should have included the word “other” in your text (“……. any other first-world countries ……”).

China is not a first world country, it is a second world country. That was the name of the socialist/communist eastern countries that China was/is a part of. It has nothing to do with if they are developed or not.

A better name to use would be industrialized countries which China of course is a part of.

The meaning of “first world country” has shifted, but it still doesn’t mean merely an “industrialized nation”.

Quoting from Wikipedia:

Since the collapse of the Soviet Union in 1991, the definition has instead largely shifted to any country with little political risk and a well functioning democracy, universal health care, rule of law, capitalist economy, economic stability and high standard of living.

Altho I would certainly quibble about “universal health care”, since the U.S. is rather notoriously lacking that!

But back to the subject: I think it’s safe to say that China fails in the areas of “a well functioning democracy” and “rule of law”, if not also failing in other areas.

“Do you consider China to NOT be a first-world country?”

Well of course it’s not. Perhaps you need to review the definition of the term.

https://en.wikipedia.org/wiki/First_World

So Monaco isn’t since it’s a Monarchy.

500,000? That’s gonna leave a mark Tommy Boy.

Pure gibberish. I’m beginning to think comment by “Logic” are a joke; nobody could possibly take them seriously! 🙄

500,000 cars a year for only a $2 billion investment is a great return! That’s 4,000 per each car of yearly capacity. This thing pays for itself really fast.

Well, your arithmetic is right, sure. Except Tesla sees north of 20% margins, so a $35k car is $7000 in margin. The average purchase price of a Model III is higher than that, however. Also, lower labor costs in China. Higher import duties on American parts. I am confident that GP on 250k units from the factory will cover ROI. Vegas Casinos have an 18 month ROI once open. I believe Tesla can beat a Vegas Casino at ROI. Who, in their right minds, is shorting TSLA in 2019?

How many orders for the base version of the Tesla Model 3 (made in China) will Tesla receive from customers in China per year during the next decade?

I think that it wil be very likely that the answer to that question will be:
2020: 200,000
2021: 250,000
2022: 300,000
2023: 350,000
2024: 400,000
2025: 450,000
2026: 500,000
2027: 500,000
2028: 500,000
2029: 500,000

Tesla will build more Gigafactories in China.

The start of the construction of the Shanghai Gigafactory really is a major step forward for Tesla. And it will be remembered as one of the major achievements of Tesla in 2019.

Where will the motors and PEMs be made? Hopefully they won’t have any “special sauce” in them or proprietary tech and production info will be gone in a hurry, 100% factory owned or not. Anyone that thinks otherwise is kidding themselves. The Chinese government has a Machiavellian approach to business, particularly tech and the car business.

Reports are that the Model 3 powertrain, including the motors, are made at Gigafactory 1 in Nevada.

Presumably, therefore, the motors for Model 3’s assembled in China will also be made at the Shanghai Gigafactory.

I agree that China will likely steal all of Tesla’s tech that it thinks is worth anything, but that’s the price of doing business in China. However, having the blueprint for how to make something doesn’t necessarily mean you can make it successfully. American auto makers have been doing business in China for some years now, yet the quality of Chinese autos is quite inferior to foreign makes. Not just quite inferior to American makes, but also Japanese and S. Korean makes.

Of course, we can’t expect the inferiority of Chinese autos to last forever, any more than the inferiority of Japanese autos in the ’60s and ’70s lasted.

* * * * *
YOUNG DOC BROWN: No wonder this circuit failed. It says “Made in Japan”.

MARTY McFLY: What do you mean, Doc? All the best stuff is made in Japan.

YOUNG DOC BROWN: Unbelievable.

— “Back to the Future Pt III”

Not long ago Korean cars were considered junk….now they are probably the best you can get in the world. People first adapt so slow and then forget so fast…

Tesla has essentially been given the ball in China and told to run with it.
It’s a sweat-heart deal ala the NV playbook, so there is nothing really to constrain them aside from their
own ineptitude, which is something that they are working on.
Of course legacy auto has had years of practice with being inept, and no favorite son deals in China,
so Tesla has that going for them too.
Tesla: May all your teas be fragrant.

Very Strange.

Speaking of Pomposity.
(btw you spelled it incorrectly, ironic.)

Lots of disturbing YouTubes from foreigners (still….)living in China in how the country is reverting to a North Korea style dictatorship under its new dictator Xi.

I realize that money talks but is this really a good time to invest in China?