Is Tesla Planning to Export from Giga Shanghai?
As Tesla continues to advance Phase 2 of their Gigafactory in Shanghai, intended for local production of the Model Y, the company may have new plans for the Shanghai factory's Phase 1 which produces the China-made Model 3. Bloomberg has reported that Tesla is developing plans to begin exporting from Giga Shanghai, citing anonymous sources.
"China-built Model 3s for delivery outside the country likely will start mass production in the fourth quarter, the people said, asking not to be identified because the details are private. They said the markets targeted include Singapore, Australia and New Zealand, as well as Europe. Shipments could start as soon as the end of this year or early 2021, according to the people," Bloomberg reported. Reuters shared a similar report.
While Tesla adjust plans frequently, this move would deviate from the original intent of Giga Shanghai if the reports are accurate.
Last year, Wolfe Research's Dan Galves asked Elon Musk if there would be a possibility of exporting from Shanghai.
"No. Our plan is to source cars to the greater Europe area from Fremont, California until we have a European Gigafactory operational. That's probably a couple of years before — it's probably 2021 before we have an operational Gigafactory in Europe. And so [until] that time, we will source from California," Musk replied.
Investors will be curiously awaiting any reports on September sales for China and Tesla's Q3 delivery and production report on October 2nd or 3rd for clues on Tesla's demand as the company is expected to deliver more vehicles in Q3 than any quarter in their history.
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Disclosure: Rob Maurer is long TSLA stock and derivatives.