To relieve the Fremont plant in California, Tesla is expected to export Chinese-produced Tesla Model 3s to Europe soon.
At Tesla, the time has come for industrial reorganization. While it will start producing its first vehicles at the Berlin Gigafactory in summer 2021, the automaker could direct part of its Chinese production to Europe.
According to Bloomberg, who cites sources familiar with the matter, the American manufacturer is expected to initiate in the fourth quarter a “mass production” dedicated to exports at its factory in Shanghai. Intended to relieve the capacity of the California plant in Fremont, which today manufactures European Model 3s, this production would be oriented towards Singapore, Australia, New Zealand and Europe. Deliveries could start between late 2020 and early 2021.
If confirmed, the move would be a real strategic turnaround for Tesla, which originally planned to reserve its Shanghai Gigafactory for the Chinese market alone. A choice that could be motivated by the mixed results of the manufacturer in China. In August, Tesla sold nearly 12,000 vehicles nationwide while the plant has a production capacity of nearly 17,000 vehicles per month. The surplus would thus be “revalued” in other markets.
Another criterion: that of profitability. Cheaper to produce, the Chinese Tesla Model 3 would allow the manufacturer to generate a better margin. And why not reduce the price of the model in Europe?