It is no secret that Tesla is on the ramped-up mode in China and the Gigafactory Shanghai is geared to produce Tesla electric vehicles in large numbers starting in 2021. However, reports from the Asian country now indicate that the automaker's output for next year could reach a high of 550,000 units.
The numbers represent a target of 300,000 Model 3s and 250,000 Model Ys all assembled and ready to ship by the end of next year. The estimates were from credible supply chain sources in China but Tesla has yet to confirm if the figures are indeed realistic.
Local reports suggested that the automaker has already made the initial steps for the large-scale production activities to start in full swing, which could come as a complete surprise as Giga Shanghai is thought to be far from ready for a massive manufacturing approach.
According to Teslarati, the production targets mentioned in a report by 36 Krypton will overshoot the forecasts previously published by numerous analysts on Tesla China's production capabilities. The conservative estimates put the output numbers at no more than 100,000 units rolling out from Giga Shanghai in 2021.
While analysts seemed hesitant that Tesla can ramp production up in China by next year, the company is all geared up to push forward with innovations that would enable it to meet the high numbers. It appeared that the immediate goal is to accelerate the completion of the Shanghai facility and make it ready to accommodate the increased production phase.
So, if the local reports will turn out accurate, Tesla is in a good position to fire up the vehicle production in China and exceed the estimates assigned by analysts.
Giga Shanghai remains in the construction stage and reports indicated that the facility will double in size when completed. The acceleration mode makes sense as the factory is now geared to supply the needs of markets where Tesla is starting to establish a presence.
Tesla in China is designed to assemble EVs for the domestic market but the company is said ready to make deliveries in Europe and Australia on a temporary setup. Electrek said the Model Y and Model 3 produced in China will be exported to Europe starting in 2021, and this was already confirmed by Tesla.
The practice, however, will stop once the Gigafactory Berlin in Germany becomes operational. Tesla said the Giga Berlin will manufacture the Tesla EVs that will be sold in Europe and neighboring markets.
Per the same report, the high production target in 2021 is not impossible at all. At the minimum, the Giga Shanghai ramping up can reach an output of around 400,000 units, which will be short of the estimates but arguably beyond decent considering that the factory is building EVs while undergoing construction.