As the main sections of the Phase 2 zone of the Gigafactory Shanghai are completed, it becomes increasingly clear that production of the Tesla Model Y is likely to start earlier than expected. If there are any indications in local reports, it is indeed, as initial production of the Model Y is reportedly set to begin as early as November this year.
Tesla's Gigafactory in Shanghai has been undergoing rapid construction since the groundbreaking ceremony in January 2019. Since then, the fully functional Model 3 plant has been built in record time. And despite the pandemic this year, it looks like Giga Shanghai's phase two advancement hasn't suffered major delays. This bodes well for the Model Y ramp in China, especially since Phase 2 is set to produce an all-electric crossover.
Local reports indicate that ongoing work on the Giga Shanghai Phase 2 zone is focused on the interior of the building. According to the state local news agency Global Times Internal work and electromechanical testing are ongoing at the Model Y plant. These works are expected to be completed by October or November, which could set the stage for the start of Model Y pilot production in the coming months.
Gigafactory Shanghai's production is expected to increase significantly following the launch of Phase 2. Cui Dongshu, general secretary of the China Passenger Car Association (CPCA), even suggested that the plant's productivity could double when Phase 2 begins. It should be noted that this number could also be higher as the Model 3 plant in the Phase 1 area is not yet operational. at full capacity.
“The annual production of the first phase of the Shanghai plant has reached 150 units. After the opening of the second phase, production is expected to double to 000 units, further reducing costs and increasing competitiveness in the Chinese market, ”Cui said.
The Model Y production at Gigafactory Shanghai could significantly expand Tesla's presence in China's main auto market. The Model 3 is currently the only car that Tesla makes in the country, and the all-electric sedan has been quite successful so far. That being said, even China is a country where crossovers are becoming increasingly popular, making the Model Y ideal for the local mass market.
Tesla's Chinese site currently has two Model Y versions available for purchase. One is the Model Y Dual Motor AWD, which is priced at 488000 Yuan ($ 71), and the other is Model Y Performance, which is priced at 443 Yuan ($ 535). Estimated shipments of the Model Y made in China are currently estimated in the first quarter of 000.