Tesla Gears Up To Build Two Cars In Shanghai's Gigafactory


One will be the Model 3, but can you guess the second?

After entering a trade war with China, cars built in the US became more expensive for Chinese consumers. To get around this issue, Tesla has decided to build a new Gigafactory in Shanghai. Tesla hasn't announced when this new plant will be finished, but it has specified that it will focus on building the brand's smaller electric vehicles.

According to Reuters, a filing with the Shanghai government shows Tesla's plans to build two models during its phase one project. The first will be the Model 3 sedan, while the second will be the upcoming Model Y crossover.

Tesla has hinted at a March 2019 reveal date for the Model Y, with production set to begin in November of the same year. The Model Y will share a platform with the Model 3, so it makes sense that the two would be built in the same factory. These estimations could align with the construction of Tesla's new Gigafactory, though we have seen Tesla struggle to hit deadlines in the past. Both the reveal date and the production start date were announced prior to the decision to build a factory in China, so they may be completely irrelevant now.

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Tesla's government filings also reveal that the new factory is expected to produce 250,000 vehicles per year, down from the initial estimate of 500,000 annual units. When asked to comment on the production output of its $2 billion (estimated) factory, Tesla refused to comment. When this factory does become operational, it should help satisfy global Model 3 demand and allow Tesla to finally build its long-awaited affordable SUV.


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