A year after the idea of building a superfactory in Europe was announced, electric car maker Tesla has confirmed that the superplant will be built in Berlin, Germany, the company’s CEO, Elon Musk, announced at an awards ceremony in Berlin on November 12. The Berlin Super plant will be Tesla’s second superfactory outside the U.S. and its second outside the U.S. Tesla’s first plant outside the U.S., which began construction on January 7 this year, has been approved for mass production after more than a decade of construction.
Berlin’s superfactory has not yet opened, butmedia have revealed the size of the plant, the size of the Shanghai super plant was announced at the beginning of construction, as Tesla has identified two outside the United States super plant, Shanghai and Berlin, the two factories have many similarities, will be used to produce Model 3 And Model Y, countries and regions have huge market demand, so these two super factories, both now and in the future, will be the object of comparison.
Shanghai Super plant and Berlin super factory, both Tesla’s super factory, but in terms of size, capacity, there are still differences between the two super factories, here we also from the scale of investment, capacity, staff and economic location, etc. , the two super factories to see who is more super.
As far as the plant itself is concerned,
The size of the Shanghai super plant was revealed when construction began earlier this year, just a week after Musk announced it would build a super factory in Berlin, andmedia revealed investment, capacity and staff at the Berlin Superplant.
On the investment front, Shanghai Super Factory plans to invest 50 billion yuan, or $7.1 billion, making it the largest foreign manufacturing project in Shanghai to date. At the Berlin super plant,media revealed that Tesla plans to invest 4 billion euros, or $4.4 billion, with only 62 percent of the investment in Shanghai’s super plant, a big gap.
In terms of capacity, the Shanghai Super Plant plans an annual production capacity of 250,000 pure electric vehicles, with an initial weekly production of 3,000 vehicles, all of which will be fully operational and have a planned annual production capacity of 500,000 vehicles. Media revealed that the annual production capacity of the Berlin super plant is 150,000 electric vehicles, only the Shanghai super plant after the completion of the production capacity of 30%, compared with the Shanghai super plant capacity of the first phase of the production capacity is also 40% lower, the capacity is far less than the Shanghai super factory.
In terms of the number of employees,media have revealed that Tesla’s Initial 3,000 employees at the Berlin superplant will then increase to 7,000; tesla has not announced the number of employees in the plant since the Shanghai superplant’s plans were announced, but in terms of capacity, it will be far above the Berlin superplant. And since the Berlin super plant has not yet started, and the Shanghai super plant has been allowed to mass produce, even if the number of employees at the Berlin plant increases to 7,000, it may not be comparable to the Shanghai super factory.
Tesla Shanghai Super Factory
In terms of start-up and start-up times, at the 2018 annual general meeting, Musk revealed that Tesla plans to eventually build 10 to 12 super-plants around the world, with one confirmed in China and Europe, but the Shanghai superplant was set at an earlier date, with a land transfer agreement signed on October 17 last year. Construction began on January 7 this year, with trial production of model 3 starting in October and mass production approved on November 13. The Berlin superplant has only been confirmed for construction, but has not yet announced a specific location, and in its third-quarter results, released on October 23rd, Tesla revealed that the location of the European super plant was in its final stages and that it expected to be announced soon and that it planned to go into production by 2021.
In terms of models, the two super factories in Shanghai and Berlin are planned to produce the same models as the two super factories, both model 3 and Model Y, and the Model 3 of the Shanghai Super plant has been approved for mass production. Announcing the european superplant in Germany, Musk also said that the Berlin Superplant would start producing Model Y, but that it was not yet possible to determine whether the Berlin Superplant would eventually produce Model Y or Model 3 first, as Model Y is expected to begin mass production in the summer of 2020. As Tesla models grow, it remains to be seen whether the two superfactors will produce more models.
Tesla’s Shanghai-Berlin Super factory to produce models
In terms of the plant’s economic position,
In terms of factory size, the Berlin Super factory is far from comparable to the Shanghai super factory, but in terms of transportation, market, supporting industries and other economic areas, Berlin Super Factory still has some advantages in some factors.
In terms of transportation, transportation is a very important aspect for auto manufacturers, making cars needs to transport related equipment, raw materials and parts, and making good cars need to be transported to specific sales locations, even tesla, an emerging electric car maker. It is also necessary to consider the impact of transportation.
Tesla’s Berlin superplant, which will be built near Berlin airport and will serve the entire European and surrounding markets, as well as Germany and Europe, also has a well-developed rail and rail network, which facilitates the transport ation of raw materials, components and electric vehicles on land, but because of Berlin’s location in the northeast of Germany, far from the coastline, Other modes of transport are required for transit to achieve sea transport. Although Berlin is close to the Elbe River and has convenient water transportation, its transport capacity is far from comparable to the oceans and rivers such as the Yangtze River.
Shanghai is located in the mouth of the Yangtze River, east of the East China Sea, Tesla’s super factory in Shanghai, in addition to the use of convenient road and rail transport network, there are water and shipping can be used, easy to transport raw materials and vehicles out, by sea, Shanghai super factory produced electric vehicles, north can be transported to the Bohai region, To the south can be transported to the Pearl River Delta, Hainan, of course, can also be transported to Qingdao, Xiamen and other eastern coastal cities, through the Yangtze River Golden Waterway, you can reach Sichuan, Chongqing, plus road and rail cooperation, can be convenient transport to the major cities in China.
On the market side, Tesla’s super factory in Berlin will serve the whole of Europe and its immediate vicinity, Europe’s dense population, the current population of more than 700 million, and economically developed, is a very large demand for electric vehicles, coupled with the proximity of North Africa, West Asia and other affluent oil-producing regions, there is sufficient market support.
China is the world’s largest population, with a population of more than 1.4 billion, with the development of the economy, purchasing power is also growing, Hurun Research Institute released in the middle of last month, “rich families” with 6 million assets close to 4 million, middle-class families have reached 33.2 million, There is also a huge demand for electric vehicles.
The number and quality of talent, Germany is also A large european population, population of more than 80 million, plus Germany is a major automobile production country, the birth of Audi, BMW, Mercedes-Benz and other well-known car brands, a large number of people engaged in automobile manufacturing, Tesla in Germany to build a super factory, can make full use of Germany’s car manufacturing talent. In addition, Germany’s engineering technology is at the top level in the world, there are a large number of industrial engineering technology talent, as the birth of Audi, BMW car brands, Germany also has a large number of engineering and technical personnel in the automotive industry, Musk also revealed that they will build an engineering and design center in Berlin.
Although Shanghai has not been born BMW, Audi, such as the world’s well-known car brands, but also is one of China’s important automotive bases, is the location of SAIC, including SAIC-Volkswagen (Anting Automobile Factory 1, 2 and 3) including a number of auto manufacturing plants, there are a large number of skilled auto motive skilled workers, in terms of labor costs significantadvantage.
Tesla Shanghai Super Factory Body Processing Workshop
In terms of supporting industry, German automotive production has a long history, BMW, Mercedes-Benz history has been more than 100 years, Volkswagen Group has also existed for more than 80 years, a long history of automobile production, but also make Germany in the automotive industry has a sound supporting industry, Bosch is from Germany, a supplier of automotive technology, It is also the world’s largest provider of automotive technology, but since Tesla is an emerging car maker for electric cars, there is a difference from the fuel cars that Germany excels at.
Tesla’s Shanghai super factory is located, there are a number of automotive production plants, after decades of development, in the automotive industry has a more complete industrial chain, and as a large electronics manufacturer, Tesla planted in Shanghai, but also to take full advantage of China’s advantages in electronic product manufacturing, unlike Germany, China has Ningde era and many other automotive power battery manufacturers, power battery is essential for Tesla to produce electric vehicles.
In terms of financing, Tesla’s ability to launch model S, Model X, Model 3, electric sports cars, electric trucks, electric pickups, among other electric vehicles, is a remarkable achievement, but it’s been set up too short. Tesla is also under pressure to fund, especially as multiple electric vehicles are waiting for mass production and factories are waiting to increase, and the financing situation is an important factor in Tesla’s plant construction and subsequent development.
While Tesla’s capital position has been less optimistic, it has been popular in capital markets, both through bonds and stocks, as well as through loans.
As things stand, Tesla’s super factories in Shanghai and their super factories in Berlin are well funded locally. In documents filed with the U.S. Securities and Exchange Commission in early October, Tesla China disclosed that it had signed a financing agreement with China Merchants Bank that included up to $5 billion in unsecured 12-month revolving loans.
Tesla’s Berlin super plant is not yet operational, but it will also receive financial support from Germany, which includes Commerzbank, Deutsche Bank and Deutsche Post. In addition, Germany has planned to provide 300 million euros in subsidies to Tesla.
In terms of size, Tesla’s superfactory in Berlin is far from comparable to that of shanghai’s super factory, which, as other media have reported, is a smaller Shanghai super factory.
Although not as super-sized as Shanghai’s super-factory, Berlin Super Factory has an advantage in some factors in terms of economic zones such as transportation, market, talent and labor quantity and quality, and ancillary industries.
Tesla CEO Elon Musk
However, the Berlin super factory has not yet started construction, has approved mass production of the Shanghai super factory, also has not yet completed, the future of the two factories will be how to develop, there are still some variables, all depends on how Tesla developed.
If Tesla can maintain a good momentum in the face of increasing competition as major automakers such as Volkswagen, BMW and Daimler transition to electric drive, the chances of the two super factories being built as planned are even greater, and the two plants are likely to expand in size in the future. It’s hard to say whether the two super factories will end up with a big one.
But if Tesla’s electric car market doesnot continue to grow in the face of increasing competition, the future of the two plants will be uncertain, and the uncertainty over whether the two superfactors will be built as planned if there is a negative situation in Tesla’s decline in the fierce market competition.