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Tesla’s factories in Fremont and New York are on hold, but what’s going on with Tesla elsewhere?

In this video I’m going to share an update on Tesla’s Shanghai factory.

1. How Tesla Shanghai was impacted

2. Role of government

3. Production targets

4. Risks and headwinds

5. What this means for Tesla going forward

South China Municipal Post said the following on March 5, “The municipal government of Shanghai is pulling out all stops to ensure success at Tesla’s Gigafactory, the US carmaker’s first overseas plant, and the crown jewel of Lingang as the local authorities woo global investors to set up in the free-trade zone. Housing would be offered to Tesla’s assembly workers, installed with infrared thermal sensors to detect any fevers. Arrangements are also being made to accelerate the delivery of components from suppliers to keep production on schedule at the factory.”

According to a meeting record from Shengang Securities obtained by Ranjing Finance, on March 1, 2020, Tesla Shanghai factory experts and key investors exchanged conference calls.

"Experts said that the first phase of the Tesla Shanghai factory was mainly production of Model 3, with a planned production capacity of 150,000 vehicles, but through technical transformation and outsourcing of some parts and components, processing can continue to increase production capacity.

Current production capacity of the first phase of the plant is 2,000 units/week, with single shifts per day and overtime on Saturdays to extend the single shift time without affecting production capacity; the two shifts in March are expected to reach 3500 units/week; The entire first half of the production of 50,000 to 60,000.

It is expected that a pressure test will be conducted at the end of June. Now the entire Tesla Shanghai plant is pushing forward from high-level to ordinary employees. Capacity increase is expected to start in July and can reach a capacity of 5,000 vehicles per week, that is, 20,000 vehicles per month.

In the first and second half of this year, the combined production capacity is expected to be about 170,000 vehicles.

In addition, the domestic Model Y is currently in the early stage of fixed-point and is expected to be put into production in October. It was originally planned to be listed before the end of December 2020, but due to the impact of the epidemic, the listing plan was delayed and it is expected to be delayed until January 2021. The Model 3 has a long battery life. The version is under development, and mass production is expected in the second half of the year.

At present, Tesla is gradually completing the localization of the supply chain. According to the meeting records, according to the current number of parts and supporting value of Tesla's domestic production, the domestic production rate has exceeded 30%, and is currently expected to be around 40%; According to outside legends, the middle of the year is 70% and the end of the year is 100%. Tesla's Chinese factory experts said that the actual progress will only be faster than this, and it is expected to exceed 70% by the middle of the year."

Disclaimer: All content on this channel is for informational and educational purposes only and should not be construed as professional financial advice. Should you need such advice, consult a licensed financial or tax advisor. No guarantee is given regarding the accuracy of information on this channel. Author is long TSLA at time of original video publish date.

Tags: Tesla, TSLA, Elon Musk, Model 3, Model Y, Cybertruck, Investing

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