Tesla's Shanghai factory, which went into operation at the end of 2019, is the first wholly foreign-owned automotive manufacturing project in China.
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Tesla's push to start handing over a portion of its battery pack production to suppliers during the Model 3's changeover window is a choice it made after remeasuring costs, according to local media.
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Prototypes of the revamped Model 3 are currently being tested on the road at Tesla's Shanghai factory over weekends, with the production line doing further refinement work, according to local media.
(Image: Screenshot from a Tesla China video.)
At Tesla's (NASDAQ: TSLA) Shanghai plant, the Model 3's production workshop is currently under a high level of secrecy, but production line tuning is almost complete, local media Jiemian said today, citing an employee of a third-party supplier working at the plant.
Prototypes of the revamped Model 3 are currently being tested on the plant's roads over weekends, with the production line doing further refinement work, the employee said.
Tesla is planning to launch an updated Model 3 to compete more favorably with local Chinese car companies, the report said.
One of Tesla CEO Elon Musk's key trips to China previously was to visit Tesla's Shanghai factory to inspect the new Model 3, the report said.
Musk visited China in late May and toured the Tesla Shanghai factory, which is Tesla's largest factory in the world, producing the Model 3 and Model Y with a current annual capacity of more than 1 million vehicles.
On March 1, Reuters reported that Tesla was working to retool its Shanghai assembly plant for a revamped version of the Model 3, a project codenamed Highland by Tesla.
The Highland version of the Model 3 is expected to go into production in Shanghai in September, the Reuters report said, citing a person familiar with the matter.
With Highland, Tesla aims to cut production costs and boost the appeal of the electric sedan, which debuts in 2017, people involved in the project said, according to the previous Reuters report.
On May 16, Bloomberg reported, citing people familiar with the matter, that Tesla was nearing the final stages before starting trial production of its revamped Model 3 sedan in Shanghai.
The revamped Model 3 is slightly longer, sportier and has a sleeker interior design than earlier versions, those people said, according to the report.
Earlier today, Bloomberg reported that Tesla is laying off some battery production workers at its Shanghai plant, amid steep discounts on cars from all manufacturers.
Earlier this week, Tesla began notifying some employees on the battery assembly line at the first phase of its plant in Shanghai about the layoffs, the report said.
Jiemian's report today said two Tesla factory floor employees in Shanghai confirmed the information, but they were not sure of the percentage of layoffs.
Yesterday, local media outlet Shifang Zhixing reported that the layoffs on Tesla's battery assembly line in phase 1 would exceed 50 percent.
The layoffs are partly due to the US government's ban on subsidies for batteries imported from China, requiring local car companies to use US-made batteries, the report said, citing an insider.
Jiemian's report today cited a person familiar with the matter as saying that the batteries made at Tesla's Shanghai plant are for domestic models and not for North America.
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Earlier this week, Tesla began notifying some employees on the battery cell assembly lines at the first phase of its plant in Shanghai about that layoff, according to Bloomberg.
(Image: Screenshot from a Tesla China video.)
Tesla (NASDAQ: TSLA) is laying off some battery production workers at its Shanghai plant, amid heavy discounts on cars from all manufacturers, Bloomberg reported today.
Earlier this week, Tesla began notifying some employees on the battery cell assembly lines at the first phase of its plant in Shanghai about the layoffs, the report said, citing people familiar with the matter.
Some employees have been allowed to move to another shop, such as stamping, painting or general assembly, the people said. It's unclear how many battery workers may be let go, or the specific reasons behind the layoffs, according to the report.
Tesla employs about 20,000 people at its Shanghai plant, which can produce about 1 million vehicles a year, the report noted.
While Tesla uses batteries made by LG Energy Solution and CATL in its vehicles, those battery cells must be made into battery modules and packs before they can be installed in the cars, a process that is done for the most part in Tesla's battery workshop.
Some automation equipment that could help replace human labor on the battery production line is in the design and construction stages, one of the people said, according to the report.
The report did not provide more details on the layoff plan, though a local media outlet reported yesterday that more than 50 percent of the phase one battery assembly line workforce would be cut.
The layoffs are partly due to the US government's ban on subsidies for batteries imported from China, requiring local car companies to use US-made batteries, Chinese media outlet Shifang Zhixing said in a report yesterday, citing an insider.
In addition, the ample battery assembly capacity at Tesla's Shanghai plant is also a major reason for the layoffs, according to the report.
The battery assembly line in phase two has a capacity of 870 batteries on a single shift, while the day shift plus the night shift in the two battery plants can provide 3,400 batteries, more than the amount needed for vehicle production, according to the report.
Vehicle manufacturing-related jobs have not been affected by the layoffs yet, after all, Tesla vehicle sales are still strong, the report said.
Tesla sold 93,680 China-made vehicles in June, including exports, the second highest on record after 100,291 in November 2022, according to data released by the China Passenger Car Association (CPCA) on July 4.
Tesla's Shanghai plant produces the Model 3 and Model Y, and their breakdown sales figures are currently unknown.
In May, Tesla sold 42,508 vehicles in China, ranking third in China's new energy vehicle (NEV) market with a 7.3 percent share, according to the CPCA. Tesla's Shanghai plant exported 35,187 vehicles in May.
Model Y retail sales in China in May were 31,054, making it the best-selling SUV in China that month, according to the CPCA's rankings.
From January to May, Model Y retail sales in China were 152,461 units, also the best-selling SUV in China during that period.
Yesterday, 16 car companies, including Tesla, BYD, Nio, Xpeng and Li Auto, signed a pledge in Shanghai to jointly maintain order in China's auto market and not to disrupt fair competition with abnormal prices.
Earlier today, Tesla ramped up referral incentives for the Model 3 and Model Y in China to boost sales of the two models.
Tesla to equip revamped Model 3 in China with CATL's new battery, report says
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Musk arrived in Shanghai from Beijing yesterday evening and toured the Tesla Shanghai factory overnight.
Tesla (NASDAQ: TSLA) CEO Elon Musk has wrapped up his brief visit to China, where he spent the past two days meeting with several Chinese officials and visiting Tesla's Shanghai factory.
Musk's private jet with registration number N628TS took off from Shanghai's Hongqiao Airport at 11:23 am Thursday and is expected to arrive in Austin, where Tesla is headquartered, in 12 hours and 50 minutes, according to flight-tracking platform Variflight.
The Tesla CEO arrived in Shanghai from Beijing yesterday evening and toured the Tesla Shanghai factory overnight.
Early this morning, Grace Tao, Tesla's vice president of external affairs, shared two images on Weibo showing Musk with Giga Shanghai employees.
(Images from Grace Tao's Weibo.)
The Weibo was posted at 0:28, while Tao was at the facility, her Weibo location information shows.
Neither Tao nor Tesla disclosed the exact schedule of Musk's activities at Giga Shanghai, though Bloomberg reported that the first cars to roll off the line at the plant on Thursday were prototypes of the updated Model 3 sedan.
Musk arrived in Beijing on May 30 on his private jet, and was later met by Chinese State Councilor and Foreign Minister Qin Gang in Beijing.
Tesla opposes decoupling and supply chain disconnection and is willing to continue to expand its business in China and share in China's development opportunities, Musk said, according to a statement from the Chinese Foreign Ministry.
On May 31, Chinese Minister of Industry and Information Technology (MIIT) Jin Zhuanglong met with Musk in Beijing, where the two sides exchanged views on topics including the development of new energy vehicles (NEVs) and smart connected vehicles, according to an announcement from the MIIT.
Musk then visited China's Ministry of Commerce and was met by Commerce Minister Wang Wentao.
In addition to the meeting with Chinese officials, Musk was seen meeting with Robin Zeng, chairman of CATL, the world's largest power battery manufacturer, on May 30.
A picture circulating on Chinese social networks shows Musk and Zeng together in the lobby of a hotel.
Musk meets with more officials as he begins 2nd day of China visit
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Both models are eligible for a C$,000 federal incentive in Canada.
(Screenshot of Tesla Canada website.)
Tesla (NASDAQ: TSLA) is listing China-made Model 3 and Model Y electric vehicles (EVs) for sale in Canada, confirming that it has completed its first shipments to North America from its Shanghai plant, according to a Reuters report today.
The rear-wheel drive Model Y and the long-range all-wheel drive version of the Model 3 are available for immediate delivery in British Columbia, with codes indicating they were built at Giga Shanghai, the report said.
Both models are eligible for a C$5,000 ($3,695) federal incentive in Canada, which, unlike the US, does not link EV subsidies to the location of the plant where the cars are built, the report noted.
Tesla and other EV makers have a cost advantage in China, and exports to Canada have opened up a new market for Giga Shanghai, the report said.
(Screenshot of Tesla Canada website.)
The company has designed and tested Model Y cars for export to North America and aims to produce nearly 9,000 for export this quarter, the report said, citing a Tesla production plan.
On April 24, Reuters cited people familiar with the matter and a production memo as saying that Tesla had begun production in Shanghai of the Model Y that will be sold in Canada this year.
It will be the first time the company has shipped cars from China to North America, a move that will connect Tesla's largest and most cost-effective factory in the world with its largest market, North America, the report said.
Tesla's Shanghai plant, which makes the Model 3 as well as the Model Y, not only supplies vehicles to local consumers but is also an export center for the EV maker.
Tesla delivered 39,956 vehicles in China in April, and the Shanghai plant exported 35,886, according to data released earlier this month by the China Passenger Car Association (CPCA).
For the full year 2022, Tesla delivered 439,770 vehicles in China, up 37.11 percent from 320,743 vehicles in 2021.
Tesla's Shanghai plant exported 271,095 vehicles in 2022, according to data monitored by CnEVPost.
Tesla's Shanghai plant produced about 727,000 units in 2022, up 49.7 percent from a year earlier, contributing 23 percent of Shanghai's auto manufacturing output, a local official said earlier this month.
($1 = C$1.3530)
Tesla's revamped Model 3 nears final trial production in Shanghai, report says
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Both models are eligible for a C$,000 federal incentive in Canada.
(Screenshot of Tesla Canada website.)
Tesla (NASDAQ: TSLA) is listing China-made Model 3 and Model Y electric vehicles (EVs) for sale in Canada, confirming that it has completed its first shipments to North America from its Shanghai plant, according to a Reuters report today.
The rear-wheel drive Model Y and the long-range all-wheel drive version of the Model 3 are available for immediate delivery in British Columbia, with codes indicating they were built at Giga Shanghai, the report said.
Both models are eligible for a C$5,000 ($3,695) federal incentive in Canada, which, unlike the US, does not link EV subsidies to the location of the plant where the cars are built, the report noted.
Tesla and other EV makers have a cost advantage in China, and exports to Canada have opened up a new market for Giga Shanghai, the report said.
(Screenshot of Tesla Canada website.)
The company has designed and tested Model Y cars for export to North America and aims to produce nearly 9,000 for export this quarter, the report said, citing a Tesla production plan.
On April 24, Reuters cited people familiar with the matter and a production memo as saying that Tesla had begun production in Shanghai of the Model Y that will be sold in Canada this year.
It will be the first time the company has shipped cars from China to North America, a move that will connect Tesla's largest and most cost-effective factory in the world with its largest market, North America, the report said.
Tesla's Shanghai plant, which makes the Model 3 as well as the Model Y, not only supplies vehicles to local consumers but is also an export center for the EV maker.
Tesla delivered 39,956 vehicles in China in April, and the Shanghai plant exported 35,886, according to data released earlier this month by the China Passenger Car Association (CPCA).
For the full year 2022, Tesla delivered 439,770 vehicles in China, up 37.11 percent from 320,743 vehicles in 2021.
Tesla's Shanghai plant exported 271,095 vehicles in 2022, according to data monitored by CnEVPost.
Tesla's Shanghai plant produced about 727,000 units in 2022, up 49.7 percent from a year earlier, contributing 23 percent of Shanghai's auto manufacturing output, a local official said earlier this month.
($1 = C$1.3530)
Tesla's revamped Model 3 nears final trial production in Shanghai, report says
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The potential expansion would give the Shanghai factory the capacity to produce 1.75 million powertrains per year, up from the current 1.25 million, according to Reuters.
(Image: Tesla China video screenshot.)
Tesla has applied for regulatory clearance to expand its Shanghai plant and to begin producing pouch-type battery cells for the first time, according to a Reuters report today.
The potential expansion would give the Shanghai factory the capacity to produce 1.75 million powertrain units a year, up from the current 1.25 million, the report said, citing an undated public notice.
It's not clear whether Tesla is committed to moving forward with the expansion or is simply seeking approval for potential, future capacity, the report noted.
Tesla is seeking permission to produce pouch battery cells, and a trial production line would have an initial annual capacity of 20,000 amp-hour cells, the equivalent of one Model Y battery pack, according to the report.
It's not clear how Tesla would use the pouch batteries, which it hasn't used in electric vehicles before, the report noted.
Tesla is also looking to ramp up production of cylindrical 4680 battery cells in China and has brought in new suppliers to reduce costs, according to the Reuters report.
Giga Shanghai is Tesla's largest plant in the world, producing the Model 3 and Model Y, with an annual capacity of about 1.1 million vehicles.
CATL is Tesla's power battery supplier in China, and has a factory near Giga Shanghai that makes battery packs for the EV maker.
Earlier today, Bloomberg cited people familiar with the matter as saying that Tesla is nearing the final stages before starting trial production of its revamped Model 3 sedan in Shanghai.
On April 9, Tesla signed a deal with Shanghai's Lingang authorities to build a new Megafactory in the area, which will be dedicated to Megapack, Tesla's energy storage product.
The Megafactory will be Tesla's first energy storage system factory outside of the US home market, with an initial planned annual production capacity of up to 10,000 commercial energy storage batteries and an energy storage scale of nearly 40 GWh, with products to be supplied to the global market.
The plant is scheduled to start construction in the third quarter of this year and go into operation in the second quarter of 2024.
It is not clear whether the pouch battery cells mentioned in the Reuters report are related to the Megafactory.
Tesla's revamped Model 3 nears final trial production in Shanghai, report says
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The revamped Model 3 is slightly longer and sportier than earlier versions and has a sleeker interior design, according to Bloomberg.
(Image credit: CnEVPost)
Tesla is nearing the final stages before starting trial production of its revamped Model 3 sedan in Shanghai, a Bloomberg report today said, citing people familiar with the matter.
The revised Model 3 is slightly longer, sportier and has a sleeker interior design than earlier versions, the people said, according to the report.
Since the beginning of this month, some production staff at Tesla's Shanghai plant have been asked to keep their phones in special lockers outside the factory's production line to prevent potential photo leaks, one of the people said.
Production lines in the first phase of the factory could be shut down for a few days at the end of the month for adjustments, though those plans could still change, the report said.
On March 1, Reuters reported that Tesla had been working to retool its Shanghai assembly plant for a revamped version of the Model 3, a project codenamed Highland by Tesla.
The Highland version of the Model 3 is expected to go into production in Shanghai in September, the Reuters report said, citing a person familiar with the matter.
With the Highland, Tesla aims to cut production costs and boost the appeal of the electric sedan, which debuts in 2017, people involved in the project said.
Appearance and powertrain performance will also be changed, with a focus on production efficiency, they said, according to the report.
Giga Shanghai is Tesla's largest plant in the world, producing the Model 3 and Model Y, with an annual capacity of about 1.1 million vehicles.
Tesla sold 75,842 China-made vehicles in April, including 35,886 units exported, according to the China Passenger Car Association (CPCA).
Model 3 sales in China in April were 13,196 units, up 2,290.58 percent from 552 units in the same month last year, but down 39.26 percent from 21,726 units in March.
Model Y sales in China in April were 26,760 units, up 2,687.50 percent from 960 units in the same month last year, but down 51.29 percent from 54,937 units in March.
This is due to the fact that Tesla's sales in China fell sharply last April due to the Covid lockdown in Shanghai, and its pattern of producing vehicles primarily for export in the first half of each monthly quarter.
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The Model Y SUVs produced by Giga Shanghai since January 1 are equipped with an updated suspension system for improved comfort.
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