One of Tesla’s primary focuses in 2020 has been to increase the efficiency of its manufacturing chain. CEO Elon Musk has been vocal about his support for increasing production efficiency throughout Tesla’s two currently-operational vehicle manufacturing facilities. In the past, Musk has stated that the company’s production plants will be “Alien Dreadnought” factories, geared toward automation and efficiency. In China, at Giga Shanghai, things are becoming more efficient based on recent production numbers.
According to @DKurac on Twitter, Tesla’s Model 3 production at the Giga Shanghai plant was down 3.9% in September compared to August. However, Giga Shanghai was closed for the final 10 days of September, meaning it only missed out on its previous month’s threshold by about 500 cars while being closed for a third of the month.
The final ten days at Giga Shanghai were non-operational due to a national holiday.
Tesla has only been producing cars in China for nine months, as its first real deliveries began in January 2020. Since then, Chinese citizens have been buying the Model 3 in numbers that are increasing every month. Only a few outliers exist, like April, when Tesla sales in China slumped by 64%. However, this was due to the company’s announcement that it would be reducing the price of the Model 3 Standard Range+ variant in China so that it could qualify for local subsidies.
Sales in May rebounded, and the Model 3, once again, became China’s best-selling EV.
With the increased demand for the company’s vehicles, Tesla has been adjusting the price of the various Model 3 configurations to be more competitive with other EVs in the market. Recent price comparisons show that the Model 3 SR+ is still qualifying for local subsidies, while the LR RWD variant is now matching prices of the XPeng P7.
As for the production numbers, Tesla is certainly ramping quite nicely in China. If Giga Shanghai would have been producing cars for the final ten days of September, it is safe to assume it would have been a record month in terms of production. Breaking it down further, the 12,212 vehicles the company produced in 20 days means Tesla built around 610 cars a day. In the final ten days, an additional 6,106 vehicles would have rolled off production lines, making for a monthly rate of 18,318 cars in September.
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