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Tesla China VP talks Shanghai factory, Model Y and adapting to a COVID-19 world
Tesla China’s Vice President of Foreign Affairs Grace Tao gave an extensive update to Giga Shanghai’s production rate, Phase 2 progress, and how the company has evolved in a pandemic-affected work environment.
In an interview with Chinese media outlet Xinhuanet, Tao described Giga Shanghai’s projected production rate for June, along with the introduction of the Model Y in China.
Tao stated Giga Shanghai operation is going smoothly and may reach a 4,000 vehicle per week production rate as early as June. The figure of 4,000 Model 3s being rolled off production lines in Shanghai will help the company reach its anticipated annual production rate of 200,000 electric cars a year, exceeding its prior expectations of 150,000 units annually or around 3,000 Model 3s a week. In contrast, only the first phase of the Chinese production facility is built.
Giga Shanghai’s Phase 2 is also coming along nicely, Tao said. The company fully anticipates the completion of Phase 2 by the end of the year, which means the Model Y could begin mass production as early as Q1 2021.
The sheer size of Phase 2 and Tesla’s construction speed is impressive. The company completed the first phase of Giga Shanghai in one year, as the company announced public Model 3 deliveries and the Model Y manufacturing project on January 7, 2020. This date in 2019 is the exact day construction started in Shanghai.
The company has also been forced to adapt to a new world that is dealing with the massive COVID-19 pandemic. Considering the virus has origins in the Asian country, Giga Shanghai would have been a prime candidate for an extended shutdown. However, the facility was only closed for around a week and reopened on February 10. An extended playbook that described safety and health procedures for employees at Giga Shanghai has been increasingly effective in keeping workers safe and production rates steady.
The “Chinese Operation Manual” details how people can remain safe amidst the pandemic, and was the basis for Tesla’s “Return to Work Playbook” that was written to describe safe procedures for the Fremont factory’s reopening.
Outside of the factory, Tesla stores have adapted to the new process of showing the company’s products to prospective owners. Tao stated that Tesla’s internet site had become a mainstay in keeping the company’s sales healthy. At the same time, in-store experiences are crucial for introducing new product experiences and showing new features with the company’s cars.
For example, Tesla just released its White Model 3 interior in China. While virtually anyone with an internet connection can see what it looks like, the stores allow interested buyers in seeing the interior color in person, determining whether the option is right for them.
Tao stated that Tesla plans to expand its stores, which she refers to as “experience centers,” into new territories “based on the expansion of customer bases in different cities.”
Despite the overwhelming infection of COVID-19 in China, Tesla has adapted and established itself as an outlier in a failing automotive sector. The company just reduced the price of its base Model 3 to qualify for government incentives, making the vehicle even more affordable in an already strong market.
Elon Musk
SpaceX Starship V3 gets launch date update from Elon Musk
The first flight of Starship Version 3 and its new Raptor V3 engines could happen as early as March.
Elon Musk has announced that SpaceX’s next Starship launch, Flight 12, is expected in about six weeks. This suggests that the first flight of Starship Version 3 and its new Raptor V3 engines could happen as early as March.
In a post on X, Elon Musk stated that the next Starship launch is in six weeks. He accompanied his announcement with a photo that seemed to have been taken when Starship’s upper stage was just about to separate from the Super Heavy Booster. Musk did not state whether SpaceX will attempt to catch the Super Heavy Booster during the upcoming flight.
The upcoming flight will mark the debut of Starship V3. The upgraded design includes the new Raptor V3 engine, which is expected to have nearly twice the thrust of the original Raptor 1, at a fraction of the cost and with significantly reduced weight. The Starship V3 platform is also expected to be optimized for manufacturability.
The Starship V3 Flight 12 launch timeline comes as SpaceX pursues an aggressive development cadence for the fully reusable launch system. Previous iterations of Starship have racked up a mixed but notable string of test flights, including multiple integrated flight tests in 2025.
Interestingly enough, SpaceX has teased an aggressive timeframe for Starship V3’s first flight. Way back in late November, SpaceX noted on X that it will be aiming to launch Starship V3’s maiden flight in the first quarter of 2026. This was despite setbacks like a structural anomaly on the first V3 booster during ground testing.
“Starship’s twelfth flight test remains targeted for the first quarter of 2026,” the company wrote in its post on X.
News
Tesla China rolls out Model 3 insurance subsidy through February
Eligible customers purchasing a Model 3 by February 28 can receive an insurance subsidy worth RMB 8,000 (about $1,150).
Tesla has rolled out a new insurance subsidy for Model 3 buyers in China, adding another incentive as the automaker steps up promotions in the world’s largest electric vehicle market.
Eligible customers purchasing a Model 3 by February 28 can receive an insurance subsidy worth RMB 8,000 (about $1,150).
A limited-time subsidy
The insurance subsidy, which was announced by Tesla China on Weibo, applies to the Model 3 RWD, Long Range RWD, and Long Range AWD variants. Tesla stated that the offer is available to buyers who complete their purchase on or before February 28, as noted in a CNEV Post report. The starting prices for these variants are RMB 235,500, RMB 259,500, and RMB 285,500, respectively.
The Tesla Model 3 Performance, which starts at RMB 339,500, is excluded from the subsidy. The company has previously used insurance incentives at the beginning of the year to address softer seasonal demand in China’s auto market. The program is typically phased out as sales conditions stabilize over the year.
China’s electric vehicle market
The insurance subsidy followed Tesla’s launch of a 7-year low-interest financing plan in China on January 6, which is aimed at improving vehicle affordability amid changing policy conditions. After Tesla introduced the financing program, several automakers, such as Xiaomi, Li Auto, Xpeng, and Voyah, introduced similar long-term financing options.
China’s electric vehicle market has faced additional headwinds entering 2026. Buyers of new energy vehicles are now subject to a 5% purchase tax, compared with the previous full exemption. At the same time, vehicle trade-in subsidies in several cities are expected to expire in mid-November.
Tesla’s overall sales in China declined in 2025, with deliveries totaling 625,698 vehicles, down 4.78% year-over-year. Model 3 deliveries increased 13.33% to 200,361 units, while Model Y deliveries, which were hampered by the changeover to the new Model Y in the first quarter, fell 11.45% to 425,337 units.
News
Tesla hiring Body Fit Technicians for Cybercab’s end of line
As per Tesla’s Careers website, Body Fit Technicians for the Cybercab focus on precision body fitment work, including alignment, gap and flush adjustments.
Tesla has posted job openings for Body Fit Technicians for the Cybercab’s end-of-line assembly, an apparent indication that preparations for the vehicle’s initial production are accelerating at Giga Texas.
Body Fit Technicians for Cybercab line
As per Tesla’s Careers website, Body Fit Technicians for the Cybercab focus on precision body fitment work, including alignment, gap and flush adjustments, and certification of body assemblies to specification standards.
Employees selected for the role will collaborate with engineering and quality teams to diagnose and correct fitment and performance issues and handle detailed inspections, among other tasks.
The listing noted that candidates should be experienced with automotive body fit techniques and comfortable with physically demanding tasks such as lifting, bending, walking, and using both hand and power tools. The position is based in Austin, Texas, where Tesla’s main Cybercab production infrastructure is being built.
Cybercab poised for April production
Tesla CEO Elon Musk recently reiterated that the Cybercab is still expected to start initial production this coming April. So far, numerous Cybercab test units have been spotted across the United States, and recent posts from the official Tesla Robotaxi account have revealed that winter tests in Alaska for the autonomous two-seater are underway.
While April has been confirmed as the date for the Cybercab’s initial production, Elon Musk has also set expectations about the vehicle’s volumes in its initial months. As per the CEO, the Cybercab’s production will follow a typical S-curve, which means that early production rates for the vehicle will be very limited.
“Initial production is always very slow and follows an S-curve. The speed of production ramp is inversely proportionate to how many new parts and steps there are. For Cybercab and Optimus, almost everything is new, so the early production rate will be agonizingly slow, but eventually end up being insanely fast,” Musk wrote in a post on X.
SpaceX Starship V3 gets launch date update from Elon Musk
Tesla China rolls out Model 3 insurance subsidy through February
