At the end of last quarter, Tesla announced that it expects to start producing about 250,000 electric vehicles a year at its Shanghai plant. But now third-party sources report that by the end of next year, production volumes at this plant may reach 550 thousand cars. One fifth of them will be exported.
Tesla’s operations in China are generally very unpredictable. First, the company aims to meet domestic demand, as the Chinese market for electric vehicles is now considered one of the most promising in the world. The company then confirms in the current quarter that it has begun shipping Chinese Model 3s to Europe, with around 7,000 locally assembled vehicles already shipped.
According to the Chinese publication 36Kr, in 2021 Tesla plans to release 550,000 electric vehicles in Shanghai, of which 300,000 will be for Model 3 sedans and 250,000 for Model Y crossovers, the production of which will be mastered here in the near future. About 100,000 Model 3s and 10,000 Model Y crossovers will be exported outside China.
It is difficult to say for which regions the electric vehicles exported from China will be intended, since Tesla expects to launch a new enterprise in the vicinity of Berlin by July 2021 to supply the European market. The German press reports that there are some bureaucratic delays with the continued construction of this enterprise. As you know, Tesla began to build a new “gigafactory” in the suburbs of Berlin, without waiting for all approvals to be received, but now everything came down to the need to clear new territory from the forest in order to continue construction.
Elon Musk personally traveled to Germany to negotiate with local authorities. Tesla is not going to shift the start of production of electric vehicles at the new enterprise. Perhaps the Chinese volumes of supplies will be intended for the countries of Southeast Asia or the Middle East. In the production of the Model Y crossover in Berlin, the company is going to use a number of new technologies and production methods, traction batteries of the new standard size 4680 will be produced here. The European Tesla Model Y will differ significantly from the American one in design and composition of components, as previously reported.
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