Tesla plans to start production in Shanghai this month

Tesla plans to start production in Shanghai this month

October 3, 2019 0 By autotimesnews

Tesla’s Chinese plant plans to start production this month, but it is unclear when it will reach its end-year target because of uncertainties about orders, labor, and suppliers, sources aware of this issue said.

By the end of this year, the American manufacturer of electric vehicles plans to produce at least 1,000 model 3 per week from the new plant, which is a central element of its ambitions to increase sales in the world’s largest automobile market and prevent higher import tariffs on cars in the United States.

The plant’s mass production schedule is critical to Tesla’s hopes, with total production of 500,000 cars per year by the end of this year.

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Sources said the $ 2 billion plant – the first Tesla car factory abroad – received government approval last month and plans to start production in October.

 “We plan to start production in October, but the actual volume of production depends on many factors, including the orders for the cars we received, the productivity of recently hired workers, the supply chain, etc.,” a Tesla source told Reuters.

 “It is not clear when we can reach the goal of 1,000–2,000 units per week,” the man said, refusing to give his name because he was not allowed to speak to the media.

The plant is gaining momentum amid a trade war between the US and China and China’s weak auto market. Sales of new energy vehicles declined in August for the second consecutive month, and according to industry associations are likely to grow at a slower pace this year to 1.5 million vehicles, compared with a previous forecast of 1.6 million.

According to research firm LMC Automotive, Tesla performed better: sales in China rose 98% in the first seven months of this year, thanks to strong demand for Model 3.