Documents Submitted by Tesla in China Hint at a Production Increase at the Company's Shanghai Gigafactory
【Summary】Tesla is planning to increase production capacity at the Gigafactory 3 to match the increasing demand for its China-made vehicles, according to a document submitted by the company in China.
Considering how exciting things are looking for the American electric vehicle pioneer Tesla, it's reasonable to believe that the company might be looking to increase production capacity to match the growing demand for its electric vehicles.
Several reports corroborating these rumors have surfaced online and hint at Tesla's intent of increasing manufacturing capacity at its Gigafactory 3 facility in Shanghai.
Tesla recently submitted a document to the Shanghai government intending to upscale the production of motor controllers, battery packs, electric motors, and other components. The document was seen by Reuters.
More specifically, the document appealed for an increase in the production of cooling pipe sets, which are essential thermal management components used in Tesla's vehicles.
According to Reuters, the document stated that Tesla intends on increasing production of the cooling pipe sets to 260,000, annually from the current 150,000 unit capacity, which matches Tesla's future production goals.
Annual production at the Gigafactory 3 is expected to increase to between 250,000 and 260,000 vehicles, up from the current capacity of 150,000.
We expect that the new production ramp up will include additional Model Y variants, along with the entry-level Standard Range Plus (RWD), Long Range, Performance, and AWD versions of the Model 3 sedan.
So far, the reports have not detailed how this increase in production will affect other components, or in what capacity. An additional stamping line is also said to be under development to increase the turnout at the Shanghai facility.
Tesla's end game is to produce the Model 3 sedan locally in China, which is no walk in the park considering that as recently as Dec 2019, the company had to import around 70% of the components for the production of the China-built Model 3.
China is the world's largest auto market and building cars locally helps Tesla avoid import tariffs, giving the company an advantage over its global rivals.
Production operations resumed at the Gigafactory 3 in Shanghai on Feb 10, 2020, after the mandated time-off period enforced at the end of China's New Year celebrations to fight the spread of the Coronavirus.
Tesla is Also Scouting Locations for a New Gigafactory in the U.S.
Tesla Chief Executive Elon Musk also took to Twitter last week to announce that the electric automaker is currently scouting locations for its next Gigafatory, which might be built somewhere in the central United States.
The facility will focus on the production of two of Tesla's most anticipated electric utility vehicles—the Cybertruck and Model Y crossover.
According to Musk, Model Y production at a new facility will help the company meet the growing demand for its electric SUV from consumers living on the east coast of the U.S.
For now, Model Y production is underway at Tesla's factory in Fremont, California with deliveries to reservation holders already underway. Eventually, Tesla's facilities in China and Germany will begin manufacturing the competitively priced electric crossover.
Production of the Cybertruck, however, is scheduled to start sometime in 2021.
Manish Kharinta is a automotive writer based in the Los Angeles area. He has worked for automotive industry websites TheSmokingClutch.com, CarDekho.com and CarBikeindia.com. His experience ranges from covering auto shows, to car reviews and breaking automotive news. Manish aims to bring forth his unique perspective on automotive design and technological innovations in the automotive industry.
Volkswagen ID.8 Confirmed as a New Full-Size Electric SUV
Volvo's Electric Brand Polestar to Chronicle the Precept Sedan's Production Process in a YouTube Documentary Series
Kia to Introduce a Full-Size Electric SUV Based on the Upcoming IONIQ 7 From Hyundai
CEO of Electric Vehicle Startup Fisker Inc Reveals New Details About the Upcoming Ocean SUV
Here’s What We Know About Toyota's New bZ4X Concept Electric SUV
The 2022 Electric Jaguar I-PACE Gets a New HSE Trim With a $69,900 Price Tag
BMW Shares New Details & Pricing for the Electric i4 Sedan, Will Start at $55,400 in the U.S.
Quick Comparison: The 2022 Ford F-150 Lightning, GMC Hummer EV and Rivian R1T
- Porsche Looking to Develop Synthetic Fuel to Make ICE Cars as Efficient as EVs
- General Motors Accelerated the Development of the Cadillac LYRIQ Using Virtual Engineering Tools
- Tesla Engineer Tells the California DMV That Elon Musk’s Goal of Achieving Full Self-Driving by the End of 2021 Does Not ‘Match Engineering Reality’
- Silicon Valley Company DeepMap Announces ‘RoadMemory’ a Scalable Mapping Service for Autonomous Vehicles
- Volvo-backed Electric Brand Polestar in Talks to go Public via a SPAC Deal, Sources Say
- The SEC Opened Inquiry into Volkswagen Over its Marketing Stunt of Changing its Name to ‘Voltswagen’
- Ford Opens Registration Site for its New Lineup of E-Transit Commercial Electric Vans
- Audi Confirms Plans to Go All-Electric By 2026
- Ford & Volkswagen-backed Argo AI Develops an Advanced Lidar Sensor for Self-driving Vehicles
- Tesla Reports Record Deliveries of 201,250 Vehicles in the Second Quarter of 2021