Mid-Michigan's Bigger Dealer With Better Deals
Tesla will start producing Model 3s in China this year, analyst says
Palo Alto-based electric automaker Tesla Inc. is making rapid progress on its new factory in China, and could begin producing Model 3 sedans there are soon as this November, according to analysts from Morgan Stanley who recently toured the site.To get more shanghai china news, you can visit shine news official website.
By all measurements, the project is moving at a rapid clip. Tesla secured a long-term lease on the 210-acre site in October 2018, and broke ground on the property in January, telling Chinese authorities the company hoped to complete construction on a $5 billion factory there by the end of the year.
The company secured a $522 million line of credit from Chinese banks, and says it will fund nearly all of the factory’s construction costs using Chinese debt.“The speed of China’s development and work efficiency are very impressive, and it is hard to imagine finishing the process of setting up a vehicle factory in such a short time,” CEO Elon Musk said in January.
In a note published Wednesday, Morgan Stanley analyst Adam Jonas struck an optimistic tone, saying construction seems to be on track, and that the first cars could begin rolling off the assembly lines in Shanghai within the next four and a half months.He predicts Tesla will produce 35,000 to 40,000 cars in Shanghai in 2020, and around 60,000 cars there in 2021.
“Our China team’s view of Tesla’s ability to ramp domestic production and to take commercial share in the domestic Chinese market is more bullish than the forecast implied within our earnings model,” Jonas wrote, according to Business Insider. “We have allowed for a greater level of execution risk in our assumptions, given the complexity of bringing an all new plant with all new workers and many new suppliers on line within the Chinese market.”
China remains the world’s single largest market for electric cars, and is Tesla’s second-largest geographic market, accounting for $1.7 billion in revenue in 2018, or about 8 percent of the company's total revenue.