Tesla appears to be making the requisite preparations to maximize the use of Gigafactory Shanghai, with recent reports suggesting that the electric car maker will use the facility to manufacture vehicles which will be exported to other Asian territories and Europe. It is estimated that mass production of vehicles intended for export will start in the fourth quarter of 2020 or early 2021.
The update, from Bloomberg News, was reportedly shared by individuals who were familiar with the matter. Although the sources of the news agency chose to remain anonymous, they reported that Tesla is looking to ship vehicles manufactured in Gigafactory Shanghai to locations like Singapore, Australia, New Zealand and Europe. These regions, unfortunately, are currently experiencing long delivery times due to the cars being shipped from the United States.
Tesla and executives like Elon Musk have been very quiet on which locations Gigafactory Shanghai would cover, though it makes perfect sense to export vehicles from China to nearby countries. For his part, Elon Musk has noted in the past that shipping vehicles from the United States is one of the factors behind Tesla’s delays in distribution in areas such as Europe. During the Model 3 ramp, which saw delays, those problems became very prominent.
Interestingly enough, Tesla China seems to have been planning for some time now for its exporting activities. When the facility began its Model 3 test runs, for one, Tesla made it a point to highlight the build quality of its vehicles manufactured locally. This was followed by pictures of first-production cars with panel gaps that were generally more polished than any of the vehicles built at the Fremont factory.
If Bloomberg’s sources prove correct, Tesla could start saturating many Asian markets with the Model Y just as the company hits its pace with the development of the all-electric crossover in the US. This bodes well for Tesla, especially considering that crossovers are particularly common not only in China but also in other key markets in Asia and Europe.
For now, Tesla is producing most of its Fremont Factory vehicles in the United States, but initiatives are underway to change that. Gigafactory Shanghai is on the eve of producing the Model Y and Giga Berlin is expected to start producing the all-electric crossover by the middle of next year. Gigafactory Texas, which is expected to manufacture both the Cybertruck and the Semi, is reportedly pursuing initial operations beginning in May 2021.
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