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Tesla China sees an opening with manufacturing rule change

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Tesla Motors could be building a new automotive plant in China without a domestic joint venture if the Ministry of Commerce alters a long-standing manufacturing rule. Bloomberg reported early this week on this possible shift in the policy by the China Ministry, where the department commented that it will “actively implement the opening up of the new-energy manufacturing sector to foreigners, together with other departments under the direction of the State Council.”

This joint-venture change is huge news as Tesla and many other automotive companies have been courting China’s Ministry on rule changes that would facilitate production of electric cars in the country. Speculation on this updated policy looks for local governments to create more free-trade zones for manufacturers to produce cars without a traditional joint-venture arrangement with a state-owned entity.  

The news comes at an exciting time as China announced last week their intentions to phase-out fossil fuel vehicles at some point and Tesla’s interest in a new factory in China. The proposed battery plant is to be located near Shanghai and Musk said in June that the company was working with the Shanghai government to explore local production.

China has been reforming this protectionist, joint-venture rule since last year when 100 percent-owned, foreign companies began manufacturing motorcycle and batteries in July 2016.

The Rub
A couple of huge questions remain with this new development: 1) Will it include all auto manufacturers and 2) how easy will it be to manufacture in these free-trade zones? The cynic in me relents as domestic car manufacturing translates to a large supply chain for Chinese companies and strong economic growth to follow.

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Also, a shift in this policy could be an advantage for Tesla, as GM and VW already announced earlier this year their intention to produce electric cars with state-owned companies. GM announced the Velite 5 hybrid would be produced by state-owned Shanghai Automotive Industries.

The advantage for Tesla is the ability to move at their speed, and this may be a small advantage compared to legacy automakers and their current manufacturing relationships in China.

Companies have criticized the joint-venture process for years now and Bloomberg reports that this policy could be in place by 2018.   

"Grant Gerke wears his Model S on his sleeve and has been writing about Tesla for the last five years on numerous media sites. He has a bias towards plug-in vehicles and also writes about manufacturing software for Automation World magazine in Chicago. Find him at Teslarati

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Tesla Fremont Factory celebrates 15 years of electric vehicle production

Since opening in 2010, the Fremont Factory has produced all four “S3XY” models while creating tens of thousands of jobs.

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Credit: Tesla

Tesla is marking the 15-year anniversary of its Fremont Factory in California, the first automotive mass-manufacturing plant acquired by the electric car maker. 

Since opening in 2010, the Fremont Factory has produced all four “S3XY” models while creating tens of thousands of jobs and investing billions of dollars in the region.

Celebrating 15 years of EV production

The Fremont Factory’s milestone was celebrated by the official Tesla Manufacturing account on X, which posted a photo of several Teslas forming a “15” in front of the facility’s iconic white facade. As per the electric vehicle maker, the Fremont Factory has now produced 3.6 million vehicles so far, and it has also created over 20,000 jobs in the state. 

“15 years ago, we opened Fremont factory. Today, the Fremont team is producing all 4 S3XY models, totaling 3.6M vehicles made so far. 20k+ California jobs created w/ billions of dollars invested,” the official Tesla Manufacturing account on X wrote in its post.

The Fremont Factory’s transformation

Tesla acquired the Fremont Factory from the defunct NUMMI joint venture between General Motors and Toyota in May 2010 for $42 million. The facility had produced more than 8 million vehicles under GM and Toyota over 26 years. Following its acquisition, Tesla retooled the 5.3-million-square-foot plant to support the production of the Model S sedan.

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Over the past 15 years, the factory has evolved into Tesla’s primary North American production hub, assembling the Model S, 3, X, and Y. Annual output has exceeded 550,000 vehicles, including nearly 560,000 produced in 2023 alone. Expectations are high that other products, such as the next-generation Roadster and Optimus, might be produced in the Fremont Factory as well.

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Tesla posts job opening for next-generation Roadster production

Elon Musk teased a major demonstration at the Tesla Design Studio in Hawthorne, scheduled for the end of the year.

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Image used with permission for Teslarati. (Credit: Tom Cross)

Tesla has opened its first job listing specifically for the next-generation Roadster, hinting at some substantial progress on the company’s long-awaited flagship all-electric supercar. 

The company is looking for a Manufacturing Engineer to support the development and launch of new battery manufacturing equipment, which would likely be pivotal to the Roaster, considering its teased performance and range.

Tesla’s next-generation Roadster batteries

As per Tesla’s Careers website, the Roadster Manufacturing Engineer’s tasks would include ideating equipment concepts, developing specifications, validating processes, and addressing production bottlenecks. Tesla emphasized that the position involves collaboration across domestic and international sites, supporting equipment factory acceptance tests and assisting operations teams, with expected travel under 50 percent. 

“In this role, you will take large-scale manufacturing systems for new battery products and architectures from the early concept development stage through equipment launch, optimization, and handover to local operations teams. Battery development is at the heart of our company, and this is an exciting opportunity to work directly on the central challenges for the all-new Roadster product architecture while still in its early development stages,” the job listing noted.

The opening marks one of the first public hiring efforts explicitly tied to the next-gen Roadster, suggesting that the vehicle’s development might be approaching its initial manufacturing phase. The fact that the new Roadster’s first job opening is related to its battery is interesting, as the vehicle was unveiled with a range of 620 miles way back in late 2018. Though at the time, Elon Musk also noted that the Roadster would be fitted with a 200 kWh battery, twice the size of the batteries used in the Model S and Model X. 

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Musk teases “most epic demo ever” and fuels Roadster speculation

Back in July, Elon Musk teased a major demonstration at the Tesla Design Studio in Hawthorne, California, scheduled for the end of the year. Musk shared on X that he had just visited the studio, calling the upcoming event the “most epic demo ever by one of year. Ever.”

The statement immediately prompted speculations that Tesla may finally be ready to reveal the production version of the next-generation Roadster. Originally unveiled alongside the Semi in 2018, the Roadster has remained under wraps while the company scaled production of other models. Since its unveiling, however, the Roadster’s rollout has been pushed back in favor of the original Model Y, the refreshed Model S and X, the Cybertruck, the refreshed Model 3, the Semi, and the new Model Y.

At the time of its unveiling, the next-generation Roadster was teased to be nothing short of a monster, with a 0-60 mph time of 1.99 seconds and a top speed of over 250 mph. Elon Musk also teased that the next-generation Roadster would have a range of 620 miles per charge. Later, the CEO noted that the Roadster should be able to achieve a 0-60 mph launch of less than 1 second, thanks to the vehicle’s SpaceX package. Musk has also noted recently that the next-generation Roadster would be “beyond a car.”

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Tesla’s Shanghai sites now producing massive solar output, confirms exec

Gigafactory Shanghai’s rooftop solar installation now generates an impressive amount of clean energy, and other sites are following suit.

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Credit: Grace Tao/Weibo

Tesla China Vice President Grace Tao recently shared new details on the company’s solar initiatives in some of its facilities across Shanghai. 

In a post on Weibo, the Tesla executive stated that Gigafactory Shanghai’s rooftop solar installation now generates an impressive amount of clean energy, and other sites are following suit.

Tesla China’s rooftop solar initiatives

As per Tao’s post, Giga Shanghai’s rooftop solar system produces about 11 million kWh of electricity per year. This helps reduce carbon emissions by an estimated 4,600 tons annually.

The Shanghai Megafactory, which produces Megapack batteries, is also being fitted with solar panels. Once operational, it is expected to generate an additional 6 million kWh per year and further lower carbon emissions by roughly 2,500 tons.

“At present, the roof of the Shanghai Super Factory is covered with photovoltaic panels, which can generate 11 million kWh of electricity annually and reduce carbon emissions by 4,600 tons. The Shanghai Energy Storage Super Factory next door is also installing photovoltaic panels, which is expected to generate an additional 6 million kWh a year and reduce carbon emissions by 2,500 tons,” Tao wrote in her post.

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Tesla expands solar and storage efforts

Beyond its manufacturing hubs, Tesla is extending its renewable energy strategy to service centers and retail operations in China. Tao stated that the roof of Tesla’s Shanghai Kangqiao Direct Body and Paint Center already produces around 400,000 kWh of green electricity each year, reducing emissions by yet another 170 tons.

She highlighted that Tesla’s goal is to ensure clean electricity powers the full lifecycle of its products, from manufacturing and storage to on-road charging. “The manufacture, storage, and use of clean electricity runs through the entire chain of Tesla products, and is also the contribution of every Tesla owner to a sustainable tomorrow for the earth,” Tao stated.

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