Tesla’s Shanghai plant opens with full horsepower with 150,000 vehicles a year target unchanged

Tesla recently exposed the Shanghai Super Factory’s internal production line for the first time, showing the assembly workshop, coating workshop and welding workshop and other processes. Tesla’s Shanghai Superplant is currently in full production and will accelerate its goal of producing 150,000 vehicles by 2020, according to the official release of the Shanghai-based port.

Tesla's Shanghai plant opens with full horsepower with 150,000 vehicles a year target unchanged

Shanghai factory details revealed for the first time

Tesla’s Shanghai Super plant is showing off production for the first time since it resumed. In an official video released about one-and-a-half minutes, the robots have more workers than they do, showing the tesla plant’s ultra-high level of automation.

But some in the industry have questioned whether the video fully reflects Tesla’s current return to work. “You can see some of the pictures that don’t have anti-epidemic measures, not all the employees are wearing masks, so what you see doesn’t reflect the actual situation of returning to work.” “A senior auto industry figure told First Financial.

The Shanghai plant is currently Tesla’s only one still operating in the world.

In addition to the Model 3 model, the plant resumed construction on February 10 this year, and in January this year it started production of model Y. In the first quarter of this year, Tesla produced more than 100,000 electric cars worldwide.

As an important pillar of the economy, Shanghai has made great efforts to ensure that the key parts of vehicle enterprises, non-inventory parts and components of enterprises priority resumption of production. Last month, first financial reporters learned from the Shanghai Economic and Information Commission, the relevant parties coordinated the Tesla Shanghai super plant upstream and downstream industrial chain of eight suppliers resumed production, in order to promote vehicle enterprises to resume normal production.

But with Tesla still relying on imports of key components, including electric motors and cores, the industry is more concerned about Tesla’s ability to build a supporting logistics system to withstand the outbreak.

Tesla's Shanghai plant opens with full horsepower with 150,000 vehicles a year target unchanged

Blockchain technology accelerates cross-border logistics

It is understood that Tesla has used blockchain technology to manage the logistics of imported products at the Shanghai plant. Cargo Management Technology Company CargoSmart recently announced that it has completed a pilot project with COSCO Shipping, Shanghai International Ports Group and Tesla to speed up the release process.

In the pilot, Tesla used a new blockchain application to import auto parts, meaning the process from production to overseas sales would be smoother. In addition, Shanghai International Ports Group can view a single trusted source of freight order data from COSCO Shipping, enabling faster delivery orders for consignees and their shipping agents.

“This approach is to solidify information in all aspects of logistics on the blockchain, especially in cross-border trade, to avoid the intermediate link being modified and replaced. This is of great significance to the customs inspection department. Because of the high commercial value of auto parts, it may be more worth piloting. Zhao Liqiang, chairman of Bain’s global partner in Greater China Manufacturing, told First Financial.

But he says the bigger problem facing cross-border logistics today is the shortage of port loading and unloading workers. “Domestic recovery may have been gradual, but foreign logistics and manual tension at the port terminal face great challenges. Zhao Liqiang told First Financial Reporter. This means that some parts may be stacked at the port and cannot be shipped in time.

Tesla has announced a full pay cut, with executives paying up to 30 percent. Tesla also expects its U.S. plant to close until May 4. Analysts worry that the shock to global consumer confidence could affect demand in the car market. So even if Tesla can maintain its estimate of 150,000 vehicles a year, there is still uncertainty about whether the demand side will be able to keep up with the current one.

In response to the current recovery of auto industry and market sales, the National Development and Reform Commission, Deputy Director of the Department of Industrial Development, Cai Ronghua, said at a press conference on April 9 thin joint defense and control mechanism: “Affected by the outbreak, the previous period of residents’ willingness to consume temporarily suppressed, automobile production and sales have seen a significant decline.” “

From January to February, car production and sales fell by more than 40% year-on-year, and in February, production and sales fell by 80% year-on-year, Cai said, citing industry associations. But he said: “The relevant parties and local governments have been actively taking measures to focus on the flow of people, logistics, capital flows, to create favorable conditions for enterprises to resume production.” “

In response to the logistics and transportation difficulties faced by auto companies, including the supply of parts, Mr Cai said: “The vast majority of parts can be purchased domestically, and very few parts may need to be imported.” Although some foreign suppliers have been shut down because of the impact of the outbreak, but domestic companies are still in stock imported parts, after the increase in some orders, these orders are being shipped. “

“Global demand for cars is weak,” Bill Russo, founder of Automobility, an auto consultancy, told First Financial. In Both China and the United States, many people don’t make buying a car a priority right now, and even with this idea, people are out of the door in many places. This is a global, industry-wide problem, not just for Tesla. “

Tesla’s first-quarter results show that it delivered about 367,500 electric cars in 2019, up 50 percent from the previous year, barely meeting its full-year sales target. But Tesla expects sales to top 500,000 vehicles in 2020, a 36 percent increase from last year.