Tesla to utilize Gigafactory Shanghai to export cars to Asia and Europe: report

(Credit: Jason Yang/YouTube)

It appears that Tesla is making the necessary preparations to optimize the use of Gigafactory Shanghai, with recent reports stating that the electric car maker will be using the facility to produce vehicles that will be exported to other Asian territories and Europe. Mass-production of vehicles intended for export will reportedly begin in the fourth quarter of 2020 or early 2021. 

The update, which was posted by Bloomberg News, was reportedly shared by individuals familiar with the matter. While the news agency’s sources opted to remain anonymous, they did state that Tesla is looking to ship vehicles produced in Gigafactory Shanghai to locations such as Singapore, Australia, New Zealand, and Europe. Incidentally, these areas are currently experiencing long delivery times due to the cars being shipped from the United States. 

Tesla and executives such as Elon Musk have been quite silent about which locations will be covered by Gigafactory Shanghai, though exporting vehicles from China to nearby countries makes perfect sense. Elon Musk, for his part, has noted in the past that shipping vehicles from the United States is one of the reasons behind Tesla’s delivery delays in areas such as Europe. Such issues became quite notable during the Model 3 ramp, which saw delays. 

Tesla, China for its part, has declined to comment on the news. 

Interestingly enough, Tesla China appears to have been preparing for its exporting operations for some time now. When the facility started its trial production runs of the Model 3, for one, Tesla made it a point to highlight the build quality of its locally-produced vehicles. This was accompanied by images of first-production cars with panel gaps that were, ironically enough, generally more refined than some of the vehicles produced in the Fremont plant. 

If Bloomberg’s sources prove accurate, Tesla would be able to start saturating several Asian markets with the Model Y just as the company is hitting its stride with the all-electric crossover’s production in the United States. This bodes well for Tesla, especially considering that crossovers are particularly popular not just in China, but in other key Asian and European markets as well. 

For now, Tesla produces most of its vehicles from its Fremont Factory in the United States, but projects are underway to improve this. Gigafactory Shanghai is on the eve of producing the Model Y and Giga Berlin is expected to start producing the all-electric crossover by the middle of next year. Gigafactory Texas, which is expected to produce the Cybertruck and the Semi, is reportedly looking to start initial operations as early as May 2021. 

Tesla to utilize Gigafactory Shanghai to export cars to Asia and Europe: report
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