Tesla began delivering its very first cars built at the Shanghai plant in China on Monday. The event comes six years after Elon Musk announced that Tesla will produce cars in China. The factory, called Gigafactory 3, is building the small Tesla Model 3. 15 cars have already been assembled and will be delivered to factory employees.
Of course, the brand intends to increase the production of the vehicles to 3,000 cars per week and possibly even add the production of the future small Model Y SUV alongside the Model 3. The main goal will be to build 500,000 cars per year in China. An ambitious plan that the Palo Alto brand intends to achieve in the coming years.
The Shanghai plant is Tesla's first foreign production site. Another will be set up in Europe, in Berlin, Germany. This site is scheduled to open in 2021. The Shanghai plant is also the first exclusively foreign-owned automotive plant in China. The plant also has the advantage of avoiding the high Chinese tariffs imposed on imported cars.
Tesla is well on its way to success in China. Sales have increased significantly since this year and the arrival of the more affordable Model 3 should further strengthen this momentum. In addition, the car will now be more attractive to the Chinese, as it will now be built locally.