Skip to main content
Sister Publication Links
  • Automotive News
  • Automobilwoche
  • Automotive News Canada
  • Automotive News China
Subscribe
  • Subscribe
  • Newsletters
  • Login
  • HOME
    • Latest news
    • Automakers
    • Suppliers
    • New Product
    • Environment/Emissions
    • Sales By Market
    • On The Move
    • Auto Shows
    • Munich Auto Show
    • Geneva Auto Show
    • Paris Auto Show
    • Beijing Auto Show
    • Shanghai Auto Show
  • Features
    • Long Read
    • Interview of the Month
    • Focus on Electrification
    • Focus on Technology
    • Segment Analysis
    • Cars & Concepts
    • Supplier Spotlight
    • Europe By The Numbers
  • Opinion
    • Blogs
    • Commentary
    • Guest columnists
  • Photos
    • Photo Galleries
    • Geneva Photo Gallery
    • Beijing Photo Gallery
    • Frankfurt Photo Gallery
    • Paris Photo Gallery
    • Shanghai Photo Gallery
  • Podcasts
  • Car Cutaways
  • EVENTS
    • ANE Congress
    • ANE Rising Stars
    • ANE Eurostars
    • Browse photos from the 2021 awards ceremony
  • More
    • Publishing Partners
    • Social Media
    • Contact Us
    • Media Kit
    • About Us
    • Capgemini: Securing the industry's future through a radical rethink
    • Capgemini: Succeeding with the automated driving journey through AI
    • HEXAGON: Plugging into data is the only way to make winning EVs
    • TUV Rheinland: Battery testing center for large battery packs and more
    • TUV Rheinland: Ideas, services and certifications for smart mobility
    • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
    • Toyota Europe
    • UFI Filters
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter
MENU
Breadcrumb
  1. Home
  2. Automakers
October 02, 2019 09:09 AM

Tesla aims to start China production this month, report says

YILEI SUN and JOHN RUWITCH
Reuters
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    tesla1_i.jpg
    BLOOMBERG

    Tesla CEO Elon Musk, center, celebrates the groundbreaking of the automaker's factory near Shanghai in January.  

    SHANGHAI -- Tesla's China factory aims to start production this month but it is unclear when it will meet year-end production targets due to uncertainties around orders, labor and suppliers, sources with knowledge of the matter said.

    The U.S. electric vehicle maker aims to produce at least 1,000 Model 3s a week from the new factory by the end of this year, the centerpiece of its ambitions to boost sales in the world's biggest auto market and avoid higher import tariffs imposed on U.S. cars.

    The plant's mass production schedule is crucial for Tesla's hopes of reaching its total production rate at an annualized 500,000 vehicles by the end of this year.

    The $2 billion factory -- Tesla's first car manufacturing site overseas -- gained key government approvals last month and is on schedule to start production in October, the sources said.

    "We aim to start some production in October, but the actual production volume depends on many factors including car orders we received, performance of newly hired workers, supply chain and so on," a Tesla source told Reuters.

    "It's unclear when we can reach the 1,000-2,000 units per week target," the person said, declining to be named as he was not allowed to speak to media.

    Tesla did not respond to requests for comment.

    The factory is kicking into gear amid the U.S.-China trade war and weakness in China's auto market. Sales of new energy vehicles contracted for a second month in a row in August, and are likely to grow at a slower pace this year to 1.5 million vehicles, down from a previous forecast of 1.6 million, according to an industry association.

    Tesla has fared better, with China sales rising 98 percent in the first seven months of this year thanks to strong demand for Model 3, according to research firm LMC Automotive.

    New phase

    Tesla has embarked on a new phase of construction at the factory in a sign of confidence in its China strategy. The new facilities will include battery pack production units, according to a company source and documents.

    The so-called 1.5-phase works, which have not previously been reported, include a production workshop and an energy center, construction documents showed. Construction is scheduled for completion by around the end of this year.

    Tesla also is looking to hire battery-related production engineers in Shanghai, according to its job advertisements.

    The plant, which Tesla says will be simplified and more cost-effective than its existing Model 3 line, will have 500,000 units of annual capacity when the second phase is completed, doubling from initial phase capacity of 250,000 vehicles.

    The factory, China's first fully foreign-owned car plant, is a reflection of Beijing's broader shift to open up its car market.

    Shanghai authorities have offered assistance to speed up construction, and China excluded Tesla models from a 10 percent car purchase tax on Aug. 30.

    State partners of the Tesla project include Shanghai Construction Group, China Construction Industrial & Energy Engineering Group, State Grid, Power Construction Corporation of China, and MinMetals' Shanghai unit Baoye, according to multiple sources involved in the construction project.

    RECOMMENDED FOR YOU
    Beijing offers subsidies to spur demand for new-energy cars
    Recommended for You
    Cars charging China
    Beijing offers subsidies to spur demand for new-energy cars
    VW Wolfburg exterior smoke stacks 2022
    Putin is pushing Germany's economy to the brink with gas supplies
    B-ON Vehicle Family
    Former BMW CFO plans rapid expansion in electric van sector including U.S. plant
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up and get the best of Automotive News Europe delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    SUBSCRIBE TODAY

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    SUBSCRIBE NOW
    Connect with Us
    • Twitter
    • Facebook
    • LinkedIn
    • Instagram

    Founded in 1996, Automotive News Europe is the preferred information source for decision-makers and opinion leaders operating in Europe.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI  48207-2997
    Tel: +1 877-812-1584

    Email Us

    ISSN 2643-6590 (print)
    ISSN 2643-6604 (online)

     

    Resources
    • About us
    • Contact Us
    • Advertise with us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Awards
    • Rising Stars
    • Eurostars
    • Leading Women
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Europe
    Copyright © 1996-2022. Crain Communications, Inc. All Rights Reserved.
    • HOME
      • Latest news
      • Automakers
      • Suppliers
      • New Product
      • Environment/Emissions
      • Sales By Market
      • On The Move
      • Auto Shows
        • Munich Auto Show
        • Geneva Auto Show
        • Paris Auto Show
        • Beijing Auto Show
        • Shanghai Auto Show
    • Features
      • Long Read
      • Interview of the Month
      • Focus on Electrification
      • Focus on Technology
      • Segment Analysis
      • Cars & Concepts
      • Supplier Spotlight
      • Europe By The Numbers
    • Opinion
      • Blogs
      • Commentary
      • Guest columnists
    • Photos
      • Photo Galleries
      • Geneva Photo Gallery
      • Beijing Photo Gallery
      • Frankfurt Photo Gallery
      • Paris Photo Gallery
      • Shanghai Photo Gallery
    • Podcasts
    • Car Cutaways
    • EVENTS
      • ANE Congress
      • ANE Rising Stars
      • ANE Eurostars
        • Browse photos from the 2021 awards ceremony
    • More
      • Publishing Partners
        • Capgemini: Securing the industry's future through a radical rethink
        • Capgemini: Succeeding with the automated driving journey through AI
        • HEXAGON: Plugging into data is the only way to make winning EVs
        • TUV Rheinland: Battery testing center for large battery packs and more
        • TUV Rheinland: Ideas, services and certifications for smart mobility
        • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
        • Toyota Europe
        • UFI Filters
      • Social Media
        • Facebook
        • Instagram
        • LinkedIn
        • Twitter
      • Contact Us
      • Media Kit
      • About Us