Initiated in July 2018 with the official approval of the Shanghai regional government, the creation of the Shanghai mega-factory is key to Tesla’s growth strategy to increase sales worldwide to avoid import tariffs imposed on US-made cars. Tesla has big ambitions for its Shanghai factory which stands currently at a production capacity of 3,000 cars per week, allowing the company to aim for a 150k capacity for its Model 3s. The second phase of the Shanghai mega-factory should push the production capacity to 250k, which will help to fulfill the country’s demand for high-performance electric vehicles. This extra investment makes the mega-factory the largest ever foreign-invested manufacturing project in Shanghai.
The long-range model production has already started in March 2020 and the mega-factory has been functioning smoothly during the pandemic and implemented unique measures to ensure the safety of its workers. Though initially scheduled to be ready in June, a sneaky drone video by Wuwa Vision showed numerous model 3 vehicles freshly produced and parked waiting for their shipment to delivery centers in China. Tesla has managed to produce the cars ahead of the initial schedule despite the difficulties of the pandemic, this will be a great milestone for the Shanghai-based factory.
Back in September last year Elon Musk announced that Tesla will be putting together a major engineering team in China that would focus heavily on software/firmware for its factory and cars. Elon later emphasized on the fact this team would be working on new products. Tesla powerful production factory and design facility will turn Shanghai into a major hot-spot in the car industry, a good opportunity to define a new “made-in-China” quality.
As part of Tesla’s development strategy, earlier this month the brand opened its first all-in-one experience center in Shanghai, on which the Experience center manager commented: “The Chuangzhihui store is the first new mode experience store that Tesla tried in Shanghai. Tesla Experience Center used to have two modes of operation. Plus, open in Hongqiao and Jinqiao, the Lite retail chain, has branches in Taikoo Hui and Xintiandi.” The center will provide a sales after-sales and maintenance service, as well as the test-drives for customers. A good opportunity for you to go and try the electric car of your dream.
Tesla has been investing massively into Shanghai with big hopes to boost its yearly results. The strategy proves to work as sales have been increasing along with the growing demand for electric cars. Shanghai will now lead a major effort in the industry to innovate and deliver high-quality made-in-China cars for Chinese customers. Elon went as far as giving the best cringe-worthy dance moves at Tesla mega factory in Shanghai, are you not convinced yet?