Home » Tesla makes Xi happy by making Shanghai Giga factory its prominent production base

Tesla makes Xi happy by making Shanghai Giga factory its prominent production base

half the vehicles Tesla delivered last year came from Shanghai.

by SEP Editor
3 mins read
(Photo Credit: Xinhua)

Tesla Giga Shanghai production now plays prominent role than that of in California and Berlin. Its production speed for Tesla Giga Shanghai plant production is unheard of, with rate faster than 38 seconds per car (24/7). Yet according to a new video released, Tesla can make Model Y even faster, 34 seconds at its peak.

It is also revealed that Tesla is building third stage of its Giga factory construction.

(Photo Credit: Tesla Greater China)

Xi seems to like Musk, at least for now

  • Viewed the South African-born entrepreneur as a technology utopian.
  • Showered him with cheap land, low-interest loans and tax incentives.
  • Musk’s entry to China boosted confidence of China EV Trio Nio, Li Auto and Xpeng.

Musk returns with excellent sales behavior

  • Model 3 and Model Y account for 97% of total deliveries, delivered a total of 91,208 units.
  • About half the 936,000 vehicles Tesla delivered last year came from Shanghai.

Many wonder how Tesla managed its supply chain shortage situation, what Tesla has done strategically is DIY– designs a lot of its own hardware and software, which is fundamental to the company’s ability to control its supply chain more flexibly.

It has also dropped the use of automotive radar, saving it money for its vehicles and using fewer parts enabling it to respond to the supply chain crisis better than its competitors.

But look out for rising price for Tesla Models

As China’s subsidies for new energy vehicles are being cut, and consumers will have to pay higher prices for electric vehicles in the future.

The Ministry of Finance clearly stated in a notice on subsidy withdrawal: “Taking into account factors such as new energy vehicle industry development planning, market sales trends and smooth transition of enterprises, the 2022 new energy vehicle purchase subsidy policy will end on December 31, 2022, and vehicles licensed after December 31, 2022 will no longer be subsidized. “

With strong sales, Tesla is passing some of its costs on to consumers in order to ensure profits. In the United States, Tesla raised prices in succession last year, and recently raised the price of the FSD software feature to $12,000; 

In China, Tesla also began to intensively launch a wave of price increases at the end of last year, in less than two months, the price of the car was raised about 10%.

We may remain optimistic on Sino-Musk relationship, as of now.


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