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Tesla wants to build 250,000 Model 3 & Model Y per year at future Shanghai plant

Tesla Model Y | Photo: Tesla
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Daniel Rufiange
The Model 3-based Model Y compact SUV should be presented next spring

American automaker Tesla is setting a production target of 250,000 units per year at its future assembly plant in Shanghai, China. This will represent the first production phase that will be implemented as soon as construction of the new facility is completed.

Last week Tesla signed an agreement with the city of Shanghai to reserve an 860,000-square-metre site for the company’s first mega-factory built overseas. The project is expected to cost $2 billion USD.

This information came out courtesy of documents registered with Chinese authorities, including a feasibility study for the project, and it makes clear the seriousness of Tesla’s intentions. The company has gone so far as to post job offers to fill some high-level positions at the new facility, namely a director of financing and a specialist in architectural design.

| Photo: Tesla

The factory will be used to build both vehicles and the batteries that power them.

In the case of the former, one of them will be the Model 3 already well-familiar to consumers, but the other, the Model Y, has only been seen in two photos supplied by Tesla. Next March it is expected to finally make its public debut. The Model Y SUV is smaller than the Model X, and will borrow the Model 3’s platform.

The company plans to get the first completed vehicle off the new plant’s assembly line in 2021. And though the short-term target is 250,000 units per annum, Tesla hopes to be able to double that total eventually.

Many eyes within the industry will be peeled on the progress of this project. If it carries through to completion, and if production targets are met, it could have a major impact on Tesla’s fortunes going forward.

Daniel Rufiange
Daniel Rufiange
Automotive expert
  • Over 17 years' experience as an automotive journalist
  • More than 75 test drives in the past year
  • Participation in over 250 new vehicle launches in the presence of the brand's technical specialists