According to Bloomerg, on Monday, Tesla is going to start building their first deliveries of the Shanghai built Model 3 sedans. The report from earlier of this week explains that the cars are now rolling off assembly line at their newer Tesla Shanghai Gigafactory which is now under operation but also will be extending in the nearby future – thanks to their $1.4 billion investment in the local funding.
The construction of the Shanghai Gigafactory started during the early period of this year and the turnaround duration in terms of the construction and building vehicles is quite impressive. This Model 3 vehicles created in the China will supply a break in the price vs. the imported vehicles as the cars made in country enjoy the exemption from an amount of 10% tax applied to the imported cars. The Tesla Model 3s in the China also will receive a government purchase incentive of around $3.600 in each car that should move even at higher sales.
The Shanghai factory of the Tesla is the first manufacturing facility which is outside of the country despite the presence of a gigafactory in the Germany outside of the Berlin. Tesla has teased the plans for minimum a 5th gigafactory with the location to be revealed much later.
The production capacity of Tesla in the Shanghai isn’t so high volume to start with though previously the company said that they were targeting the rate of production at 1000 cars in a week by the end of the year with the potential of producing 3000 cars per week. The tax breaks and the incentives have aided the demand for the Model 3 in the China is expanding significantly in this year. So, any kind of progress on the production in the country is bound to aid the lift of global vehicle sales.