Tesla Gigafactory Shanghai is now a primary vehicle export hub

(Credit: Tesla)

Tesla recently revealed that Gigafactory Shanghai has fully transitioned to being the company’s primary export hub. Giga Shanghai has been instrumental to Tesla’s record deliveries this year, so it may not be surprising that it has become the company’s main export center.

“Due to strong U.S. demand and global average cost optimization, we have completed the transition of Gigafactory Shanghai as the primary vehicles export hub,” wrote Tesla in its Q2 2021 Update Letter.

Before the Q2 earnings call, Tesla revealed that Model Y deliveries in Europe would begin this quarter. As per Tesla’s recent Update Letter, European demand “remains well above supply,” causing lengthy wait times for delivery. So far, Giga Shanghai exports have been helping the Fremont Factory meet the demand for Tesla cars in Europe. 

Giga Berlin was supposed to help Tesla meet the demand for the Model Y in Europe. It was scheduled to start production this month, but permit processing has delayed the original plan. Brandenburg’s Economic Minister Jörg Steinbach remains hopeful that the first Made-in-Germany Tesla Model Y will still roll out of the Giga Berlin plant before the year ends.

As such, Gigafactory Shanghai will probably fill in the gap that Giga Berlin was meant to cover. Model Y reservation holders in Europe might be more likely to receive vehicles from Giga Shanghai than from Fremont moving forward. 

This quarter Tesla China released the Model Y Standard Range to the local Chinese market for ¥276,000 after incentives. Giga Shanghai has been producing the Model Y Long Range for quite some time already. Tesla plans to deliver the Model Y Longe Range to European customers this quarter. As of this writing, customers ordering a Model Y Long Range can expect their vehicle delivery sometime in September. 

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Tesla Gigafactory Shanghai is now a primary vehicle export hub
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