INSUBCONTINENT EXCLUSIVE:
Tesla will start making the first deliveries of its Shanghai-built Model 3 sedans on Monday, Bloomberg reports
The cars are rolling off the assembly line at the new Tesla Shanghai Gigafactory, which is operational but which also will be expanding in
the future thanks to a fresh $1.4 billion injection in local funding reported earlier this week.
The Shanghai gigafactory construction only
began earlier this year, and its turnaround time in terms of construction and actually producing vehicles is impressive
The Model 3 vehicles built in China will provide a price break versus imported vehicles, as cars made in-country enjoy exemption from a 10%
tax applied to imported cars
Tesla Model 3s built in China also get a government purchase incentive of as much as $3,600 per car, which should drive even higher
sales.
Tesla Shanghai factory is its first manufacturing facility outside of the country, though there also a gigafactory in the works in
Germany just outside of Berlin, and Tesla has teased plans for at least a fifth gigafactory with a location to be revealed later.
Tesla
production capacity in Shanghai probably isn&t very high-volume to begin with, although the company has said previously it was targeting a
production rate of around 1,000 cars per week by year end, with potential to ramp up to around 3,000 cars per week
Tax breaks and incentives have helped demand for the Model 3 in China grow significantly in 2019, so any progress on production in-country
is bound to help lift global vehicle sales.
