A new report reveals that Tesla Gigafactory 3 in China has already started producing Tesla Model 3. In fact, several reports from China claimed to see a lot of Model 3 coming out of the massive factory. However, it appears that the electric car juggernaut has not yet received the sales approval, which means it is not yet allowed to officially sell the electric vehicles.
In its recent earnings call last October, Tesla confirmed that it was able to produce full vehicles at the Tesla Gigafactory 3 as part of its trial production. The production ranges from the body to paint to the general assembly. We have cleared the first few milestones toward manufacturing license and are currently working in finalizing the license and meeting several other government requirements before we start ramping production and delivery of vehicles from Tesla Gigafactory 3, reports Electrek.
Tesla Chairman Robyn Denholm confirmed last month that Tesla is still waiting for a manufacturing certification, which they hope to get before the year ends. A week after the chairman's statement, Tesla Gigafactory 3 obtained the manufacturing license.
But, it seems that Tesla is still missing the official sale approval for the vehicles made in Tesla Gigafactory 3 in Shanghai, China. At the moment, the electric car giant is making some decent inventory at Tesla Gigafactory 3. The most recent drone flyover video of the Tesla Gigafactory 3 shows more than 200 Tesla Model 3 vehicles parked in a lot located at the back of the gigantic factory.
Tesla CEO Elon Musk has been guiding the plant in rapid production ramp-up in phases beginning with 3000 vehicles per week at Tesla Gigafactory 3. This is reportedly expected to happen in the first quarter of 2020. The first Tesla Gigafactory 3 produced Tesla Model 3 is anticipated to be delivered to the Chinese employees of the company.
The Chinese government has been very supportive of the Tesla Gigafactory 3, so the hold up might be temporary. The government could be doing its due diligence with the vehicles before releasing the approval of its sale in the country. If anything, it is likely that the Chinese government is giving the company some more time to ramp up its production and build more inventory.
The only issue is that Tesla does not like sitting on inventory for too long because it has a negative impact on the financial aspect of the company. The production of Tesla Gigafactory 3 has a big impact on the fourth-quarter deliveries of the company.
