KEY POINTS

  • Tesla CEO Elon Musk was in Tesla Gigafactory 3 in China as the company starts the delivery of Made in China Model 3 sedans to non-Tesla customers
  • The production facility starts the production of Tesla Model Y on Jan. 7
  • Elon Musk hinted that the Model Y production would use Advanced Manufacturing Technologies

Tesla Gigafactory 3 in Shanghai is the first facility of the American electric vehicle maker outside the US, and so far, it was successful in hitting the company’s goals. The facility now averages 3,000 Made in China Model 3 weekly, and Tesla CEO Elon Musk visited the production facility recently to lead in the delivery of the electric sedans to non-Tesla customers. The CEO also revealed the launch of the Tesla Model Y program in the facility and announced that it would use Advanced Manufacturing Technologies for the electric SUV.

The production of Tesla Model Y in Gigafactory 3 starts on Jan. 7, 2020. The US electric vehicle maker did not elaborate on the timeline to build the electric vehicle model, but Tesla CEO Elon Musk made an interesting comment about the Model Y program. “Model Y will also have some advanced manufacturing technology that we will reveal in the future. I think it will be exciting to show the kind of manufacturing technology associated with the Model Y, and it will be exciting to learn about these technologies,” Musk said. 

On the official Chinese website of Tesla, it states that the Tesla Model Y will retail at around $64,000, which, compared to its price in the US, is substantially more expensive. But, Tesla also said that the official pricing will be announced later, which means that it could still change in the future. The production of Model Y in the Shanghai facility of the company would benefit its total production output considering the Model Y and the Model 3 shares 75 percent of components.

Elon Musk oversaw the delivery to customers of the first batch of made-in-China Tesla Model 3 cars Elon Musk oversaw the delivery to customers of the first batch of made-in-China Tesla Model 3 cars Photo: AFP / STR

In regards to advanced manufacturing technologies that Elon Musk mentioned, at this point, there are no available details. However, in the past, the Tesla CEO mentioned that the company is working on a massive new machine that could produce the Tesla Model Y frame in nearly one piece. Perhaps, the Tesla CEO is referring to this one when he mentioned the advanced manufacturing technologies for Tesla Model Y.

If this is the case, the new production program of the Tesla Model Y in Shanghai Gigafactory 3 could also be introduced to the manufacturing process of Tesla Model 3. Further, it could result in higher production efficiency, which could translate to higher production output. A Wall Street analyst earlier said that the Tesla Gigafactory 3 in Shanghai is one of the crucial elements of Tesla’s success in 2019 and perhaps in 2020.

The Gigafactory 3 took nearly a year to finish, but in the last quarter of 2019, the production facility came to life and started producing Made in China Model 3 sedans while waiting for the approval to sell from the Chinese government.