Tesla Model 3 Initial Chinese Production Targeted At 3,000 Per Week

NOV 2 2018 BY ERIC LOVEDAY 24

Not quite Fremont levels, but still a healthy output figure.

A new filing shows that Tesla intends to produce approximately 3,000 Model 3s in China per week in initial stages.

Producing in China is essential to avoiding tariffs, which increase the price of imported cars. For Tesla, this has been a constant struggle with the Model S and Model X, but with the lower-cost Model 3, it would be even more negatively impactful.

Therefore, it’s assumed that the majority of Model 3 sold in China will be produced there.

Automotive News adds:

“Tesla Inc. said on Friday that it is developing plans to start producing about 3,000 Model 3 vehicles per week in Shanghai in the initial phase of its Gigafactory 3 to reduce the impact of tariffs.”

Tesla added that its near-term goal is to get production of the Model 3 at its Fremont factory to a level of 7,000 per week, which is considerably above the ~5,000 produced weekly right now.

Longer term, the target is still 10,000 in Fremont, plus 3,000 eventually in China for a total of 13,000 per week.

You can check out Tesla’s progress so far in China here in this groundbreaking construction video.

Source: Automotive News

Categories: China, Tesla

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24 Comments on "Tesla Model 3 Initial Chinese Production Targeted At 3,000 Per Week"

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Ron M

If any country can get EV’s mainstream it’s China. China plans on selling only EV’s in the country by 2030. 100% EV’s by 2030 for a country that buys 30 million vehicles in a year. Tesla being the first manufacturer to be in China building cars without a Chinese partner not having to share profits or technology is great for Tesla. The Shanghai GF will be only the first in China.
The fossil industry has to be scared now and auto manufacturers have been put on notice. Build EV’s or go out of business.

Do Not Read Between The Lines

7,000 Fremont, 3,000 Shanghai.
So now we know where they’re going to try for the 10k.

Ron M

Not necessarily I think before they reach 3,000 in China they will be producing 10,000 in Fremont.

Doggydogworld

Yes, the new 2019 goal is clearly 7,000/week in Fremont and 3,000/week in Shanghai. That’s a complete change from before. The 10-Q no longer talks about 10,000/week in Fremont. They do say they can go beyond 7,000 with incremental capex, but that’s clearly not the plan.

Shanghai will start out using batteries and probably drive units from Nevada. I don’t know what they’ll do about body and paint. You can set up a manual assembly line in a few weeks (even in a tent!), but stamping, welding and paint need to be automated and enclosed for quality control. That stuff takes time to set up and dial in and they haven’t even started construction of the building yet.

I also thought they might initially ship painted bodies from Fremont, but the 10-Q specifically mentions GF1 and not Fremont, which kind of shoots down that part of my theory.

Ron M

If there were to use batteries and drive change units from Nevada wouldn’t they have a tarriff costs added.

Doggydogworld

I believe so. It’s not the long term plan, but they don’t have a battery partner for China yet.

Ron M

That’s why there building a factory in Shanghai to build the complete EV and Panasonic is or will be the partner

Doggydogworld

Musk has said multiple times they are still working out the battery situation for Shanghai. Eventually they will use cells made somewhere in China by someone who may or may not be Panasonic. Initially it sounds like they’ll ship batteries from GF1, but that’s also not certain.

Heisenberght 3.0

“, the new 2019 goal is clearly 7,000/week in Fremont and 3,000/week in Shanghai.”

If they achieve that goal I will be dancing on the table wearing a bikini (ouch…) I guess it will be hard enough to build Shanghai factory within 2019 not to mention ramp up… Well… One can hope!

Ron M

If you look at this link you’ll see that out of 36 light vehicle sales in the US there are only 20 that sell more than Tesla. By the end of next month Chrysler will be sell less light vehicles than Tesla. At least 5 more car manufacturers will fall behind in sales to the US next year.
ww.usdebtclock.org/auto-sales.html

Pushmi-Pullyu

Wow! Bigger than Chrysler? Tesla really is growing up!

Go Tesla! 🙂

Ron M

I was also surprised to see the Tesla US auto sales actually matched real close to Insider EV numbers and there updated daily. Actually all the manufacturers are updated daily.

Dan F.

Bigger than Chrysler cars. Not including Ram trucks and Jeep.

Scott G

Cant wait for Tesla to come out with their Pickup… By By F150. Never ever thought I would say that.

Doggydogworld

Tesla pickup won’t complete with F-150. More like F-650.

Ron M

If you looked at the link or my comment it said light vehicle sales in the US.

SJC

“..even more negatively impactful.”
Poorly written.

MaartenV NL

Just a reminder on what Tesla has said about Model 3 production volumes.
Fremont, currently 5,000/week – increasing to 7,000/week by efficiency – increasing to 10,000/week with upgrades to the line.
Shanghai, starting with assembling initially 3,000/week – growing to full production of 5,000/week.
Europe start tbd – growing to 5,000/week.

This assuming that demand will be sufficient to sell these numbers of cars.

Ron M

China has set a goal of 100% electric by 2030 and India and several other countries ex Denmark and cities ex London Paris have or soon will set timelines for 100% EV’s.
100 million vehicles are sold each year. Tesla will be able to sell all they can produce and still not be able to meet the demand. If Tesla were able to build 10 million cars by 2030 it still wouldn’t meet the demand.

Doggydogworld

They 10-Q no longer says they plan to increase Fremont to 10,000/week. It says they can go above 7,000 work additional capex, but it’s pretty clear that is not their intent (ha).

If you think about the timeline, it makes more sense for Fremont to focus on getting to 7000 then prepare for early Y production.

Benz

When will the construction work of the Gigafactory building in Shanghai be finished?

Probably some time in Q2 2019?

Doggydogworld

The initial phase, yes. It won’t be very Giga, though. Maybe 50k square meters.

Benz

The construction of the building will be completed in several phases?

Just like the Gigafactory in Nevada?

Well, if that’s their plan. Then they must have thought about it. So be it.

Ron M

No way