Tesla CEO Elon Musk is confident that the first batch of vehicles will soon be out in Shanghai, China in two years. He has reason to look forward with so much optimism following the rapid pace of progress of the Supercharger network installation of the country.
Musk revealed these expectations when he spoke to KNews. He foresees the fast completion of the Gigafactory 3 in Shanghai following a groundbreaking ceremony held recently at the Lingang Industrial Zone, the site where the building will rise.
Shanghai is the epicenter of China’s auto industry with Tesla making the biggest foreign investment in China to date, the Associated Press reported.
“I kind of was expecting rapid progress because I know how quickly things can be built in Shanghai,” he said.
Other than the fast pace of construction, the Tesla mogul also has the support of the Chinese government on his side, not to mention the energy surrounding Tesla's new construction and business site, Teslarati.com reported.
Musk also pointed out how the Tesla Supercharger network was built in downtown Shanghai in just 12 days. He was impressed at how fast this was done, revealing it was the quickest time that any structure was built ever in the world.
However, there are still obstacles that lie ahead for Tesla. That includes securing the proper permits and the manpower need to get everything functioning properly. Seeing however that these are opportunities that will benefit the country and Chinese people, Musk forecasts new records to be set not only for the auto company but also in the construction of this ambitious project.
Once operational, there is the business side of things that Tesla will have to address. They will have to deal with local can manufacturers such as Nio, BYD Auto, the BAIC group and the Shanghai Automotive Industries Corp.
The new factory is forecasted to start production by the second half of 2019. Musk revealed that among the vehicles that would produce are two affordable vehicles in the Tesla Model 3 and the Tesla Model Y. Once the factory is up and if vehicle sales go well, he estimates that high volume production should set in by 2020.
Spurred by government policies aimed at accelerating consumer purchases of less-polluting cars and trucks, China has become the world's biggest market for both conventional autos and EVs, and Tesla's production there could eventually rival its U.S. volume if the company can sell its products at more affordable prices, Forbes reported.
