Tesla readies for phase 1 of mass production in China

Tesla’s goal is to produce at least 1,000 Model 3s a week from the new USD 2 billion factory before year’s end, with the specific goal of boosting sales in China, currently the world’s biggest auto market. The plant’s mass production schedule is key to Tesla reaching its goal of an annualized total production rate of 500,000 vehicles by the end of this year. The factory is China’s first completely foreign-owned car plant and seen as a signal of Beijing’s commitment to unlocking its car market to the rest of the world. The plant will feature a more simplified and cost-effective line than its existing Model 3 line and have an initial phase capacity of 250,000 units. Tesla is aiming for a half-billion units of annual capacity upon completion of the second phase. “We aim to start some production in October, but the actual production volume depends on many factors including car orders we received, performance of newly hired workers, supply chain and so on,” a Tesla source told Reuters. “It’s unclear when we can reach the 1,000-2,000 units per week target,” the person said, declining to be named due to restrictions on speaking to the media. Tesla did not respond to requests for comments by Reuters.