Tesla Model 3 30% capacity will be realized by the Chinese factory

On November 2, Tesla stated in the FORM 10-Q file submitted to the US Securities and Exchange Commission that Tesla will develop a production plan for the Shanghai plant, initially expected to produce about 3,000 c electric cars per week.

Tesla stressed that the Shanghai Super Factory will gradually increase the level of localization through local procurement and manufacturing, but the schedule of this plan is affected by many uncertain factors, including regulatory approval, supply chain restrictions and factory construction speed.

Tesla's Shanghai factory has been put into practice. On October 17, Tesla officially signed the “Land Transfer Contract” with the Shanghai Planning and Land Resources Administration. The Tesla Shanghai Plant received 864,885 square meters for a transaction price of 973 million yuan. Rice (a total of 1297.32 acres) industrial land.

Almost at the same time, Tesla Model production ahead of schedule in China 3. In July, Tesla responsible person, Tesla Shanghai plant from construction to production takes about two years, after the required 2- 3 years to reach the expected production target. However, according to the recent letter to the shareholders of the third quarter of 2018 issued by Tesla, Tesla plans to transfer some of the production of Model 3 to China in 2019, while producing in China. The vehicle will only be supplied to Chinese consumers.

It is understood that China has become the world's largest electric vehicle market and Tesla's largest overseas market. In 2017, Tesla's sales in China exceeded US$2 billion, doubling year-on-year; the data released by China Association of Automobile Manufacturers showed In September this year, sales of new energy vehicles in China increased by 54.8% year-on-year. In the first nine months of this year, sales volume increased by 81.1% year-on-year to 721,000 units.

It is worth noting that, in addition to the mass production planning in China, Tesla plans to push the total output of Model 3 to around 10,000 per week in the FORM 10-Q file submitted by Tesla. In terms of production, the Model 3 plant at the Fremont, Calif., plant will increase to about 7,000 vehicles per week. This means that Tesla Model 3 will have a capacity of nearly 30,000 vehicles per month.

Model 3 is crucial for Tesla. In the third quarter of this year, Tesla's total delivery of electric vehicles in the third quarter reached about 83,500, more than double the previous quarter, if compared with the same period last year, There are more than three times the growth. In terms of the models delivered, the Model 3 has the most, reaching 55,840, and the Model S and Model X are 14,470 and 13,190 respectively.

Thanks to a significant increase in Model 3 capacity, Tesla achieved its first profit in seven quarters. According to Tesla's third-quarter earnings, Tesla's quarterly revenue was $6.824 billion, up 128.6% year-on-year, GAAP (Generally accepted accounting principles) net profit of $ 312 million, compared with a net loss of $ 619 million in the same period last year, and a non-GAAP net profit of $ 516 million.

In addition to the upcoming Model 3 production in China, Tesla's Model S and Model X models have already been sold in the Chinese market, and Tesla said that these two cars will continue to be sold in the Chinese market. However, Tes Pull said in the document that sales of Model S and Model X are likely to continue to be negatively affected by tariffs.

Automotive industry analyst Zhong Shi said that the capacity problem is not a question of money. It is a big organizational problem, involving many professional problems such as equipment, supplier matching, etc. After the small-scale production suddenly expands, it will encounter many engineering aspects. Question. 'Tesla's capacity problem has not been solved in its US factory for many years, and production in China is difficult to get through.' said Zhong Shi.

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