Tesla’s 500K guidance effort gets a boost as Giga Shanghai targets 5,700 / week production in November

Gigafactory Shanghai reportedly aims to produce 5,700 Model 3 units per week in November, which could be enough to help Tesla meet its 500,000 vehicle guidance for this year. Tesla could give the China EV automaker a boost that it needs to deliver a stellar quarter and end the year with another bang.

Tesla China celebrated 2020 by kicking off the Model 3 delivery after completing the first phase of Gigafacting Shanghai, a year after its ground-breaking ceremony. It seems that China’s Tesla factory is planning to strengthen at the end of the year. Drone-operator wise Woo wa, Giga Shanghai has updated its production target to 5,700 Model 3 per week from November, a slight increase from October. Last month, Wuwa reported that Giga Shanghai set a target of producing 800 vehicles per day (5,600 per week — assuming the plant operates at full capacity seven days a week).

With its weekly October production goals, Giga Shanghai was on track to manufacture 22,400 Model 3s for the month with a seven-day workweek. Tesla China, however, exceeded expectations and targets by producing 22,929 Model 3 vehicles in October, according to data from the Chinese Passenger Car Association (CPCA). After a year of operation, it has become clear that Giga Shanghai can not only meet Tesla’s expectations, but will also work hard to surpass them.

At 5,700 units per week, Giga Shanghai set a reasonable target to produce 22,800 Model 3s in November. Given that it produces 22,900 in October, the plant has a high probability of reaching its target. If it maintains its weekly target, Gigafactory Shanghai could contribute ~ 60,000 more vehicles in this fourth quarter. This should play an important role in helping the company achieve its 500,000-vehicle delivery guidance in 2020.

Fremont factory ceased operations for weeks during the tail end of the pandemic Q1 and the beginning of Q2 earlier this year. At the time, access to its 2020 guidance seemed bleak for Tesla. The EV automaker did not announce any adjustments to its 500k guidance during its Q2 2020 earnings call, in fact, Tesla did not mention it.

Giga Shanghai played a key role in Tesla’s three successively successful quarters this year and continued to contribute to the company’s goals in Q4, most notably under its guidance. During its final earnings, Tesla finally guided it and announced that it would still try to complete it.

“We are aiming to achieve our original 2020 guidance of 500,000 deliveries despite operating interruptions in the first year. While this goal remains a real challenge, we believe it is possible with the company’s tight execution, ”said CFO Zachary Kirkhorn, during the Q3 earnings call.

Check out the recent flyover of Tesla’s Model 3 to Gigafacting Shanghai in the video below.

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