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Tesla: Delivers its first cars to China

Tesla has finally started delivering the cars produced by its Chinese Gigfactory, just within a year after the company broke ground its first factory located outside the US.

As a part of a ceremony, some of the Model 3 vehicles were delivered to 15 of Tesla’s employees, reported by Reuters. The delivery procedure was made well within schedule by the company, which had recently said it wanted to start living its Chinese-made cars before the Lunar New Year on January 25th.

These locally-manufactured are already offer a large price saving over imported models, and it is also informed by a Bloomberg report that the company may lower the prices furthermore as it has been using locally-made components that cut costs of it comparing to the imported models.

The deliveries did mark an important milestone for Tesla, which may help to use it’s Shanghai factory to gain a foothold in China – he world’s largest electric vehicle market. It is also said that the local factory will help to double up the speed of deliveries and cover the company from the ongoing trade war between the US and China. The Shanghai Gigafactory is the first-ever foreign-owned car plant in the history of China.

The price of Standard Range Plus Model 3s manufactured in the factory will be ¥355,800 (about $50,000) before subsidies, while models imported into the country at the present time starts at ¥439,000 (around $63,000), according to Reuters.

The price may get drop further next year, reported by Bloomberg.

Tesla already had 2 US Gigafactories in Nevada and Buffalo, New York, when he signed the deal to manufacture its third Gigafactory way back in July 2018. Tesla starts the construction of the Shanghai factory itself in January of this year, and by October it was told that they were already manufacturing vehicles on a trial basis.

The Shanghai Gigafactory start producing vehicles just 357 days after it’s construction started.

Now, the challenge for Tesla will be increasing the production rate. The company has informed that they plan to produce 3,000 Model 3 cars per week by early next year, reported by Electrek, increasing the numbers as much as 500,000 a year within two to three years (average of 10,000 per week), according to the agreement it originally signed with the Chinese government back in July 2018.

Tesla’s speed in positioning up Gigafactory 3 bodes well for Gigafactory 4, which Elon Musk (CEO of Tesla) announced in November will be located in Berlin. The company said they want it’s European Gigafactory to start constructing by 2021. Musk says his final plan is to construct as many as 10 or 12 Gigafactoriers around the world.

     What do you think about these locally-build Model 3 cars? Will they be the same as the US version of it? Please share your beliefs in the given section below.

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