When Tesla began building its Gigafacting in Shanghai, in an effort to reassure people that the automaker was not transferring production capacity to China, CEO Elon Musk said it would supply local demand in China and other markets I did not want to export.
Optics were very important since the factory was announced amid the climax of the trade war between the US and China.
At one point, CEOs were even saying that high-end Model 3 and Model Y vehicles would still be produced in the US for the Chinese market, and that Chinese factories only produced “affordable versions” of the Model 3 and Model Y. will do. Greater local demand in China:
Those plans have already changed since the epidemic in California and the closure of its factory, with Tesla starting production of the high-end version of the Model 3 in China and not closing after reopening its Fremont factory.
Now we learn that Tesla is also planning to start exporting Made-in-China Model 3 vehicles to other markets including Europe.
The Tesla Model 3S manufactured by China is likely to start mass production in the fourth quarter for out-of-country distribution, the people said, noting the details are private. He said target markets include Singapore, Australia, New Zealand as well as Europe, where customers currently have to wait for Tesla to be delivered from the US. According to people, shipments could start later this year or early 2021.
Reuters also came up with a similar report today.
The move will be a change of strategy compared to the plans previously stated by the automaker.
However, Musk had previously announced plans for Tesla to build a new electric car in China and export it worldwide, but it was not a Model 3.
Tesla plans to design, engineer, and distribute a new electric car in China and distribute it worldwide.
But the strategy did not extend to Model 3 or Model Y vehicles.
I cannot say that those reports are very surprising.
I am not against it. I am not opposed to things manufactured in China. “It is time for many to realize that companies manufacture things not only in China, because it is cheaper, but also because they have great expertise in manufacturing.
Probably not as true in the automotive business, but it has certainly changed over the years.
The thing that worries me more about this change is that Tesla did not even have to be able to export Model 3 vehicles manufactured in China, because the demand in China would be so high.
They will need all the cars for domestic demand.
If that has changed, is it because demand is weaker than expected, or is the Tesla Gigafactory achieving a higher output in Shanghai?
Yesterday, hundreds of Model 3 cars were seen in the factory loading area:
Based on registration data, Tesla’s deliveries have been strong in China over the past few months and Tesla revealed a production capacity of 200,000 cars per year at Gigafactory Shanghai by the end of Q2.
What do you think Let us know in the comment section below.
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