Tesla’s Shanghai Plant 1th Anniversary: Speeding Up The Localization of Parts, Focusing on suv market

On January 8th, Tesla welcomed the mass delivery of its first domestic electric car, the Model 3, in Shanghai yesterday, and officially announced the launch of the Model Y project. To that end, Elon Musk, Tesla’s founder and CEO, flew from Los Angeles to Shanghai on a private jet, saying, “2019 has been a great year for Tesla. “

Tesla's Shanghai Plant 1th Anniversary: Speeding Up The Localization of Parts, Focusing on suv market

Musk at the delivery site. Sina Finance /Photos

Tesla's Shanghai Plant 1th Anniversary: Speeding Up The Localization of Parts, Focusing on suv market

This began when he spent 357 days turning a field into a superfactory and completing the production-to-delivery process, with even netizens joking: “I still remember the ruins here, and goldfish remember.” “

Sina Finance also came to the Tesla Super Factory in Shanghai’s Lingang New District to witness the ceremony. At the ceremony, Musk also mentioned that in the future Tesla will go deep into China, promote energy restructuring, promote the development of shared cars. In particular, the Tesla Model Y project, which he believes could sell more in the future than all other Tesla models combined, could be sold.

357 days from ground breaking to delivery

The ceremony marks January 7, 2020, the first anniversary of the opening of Tesla’s Super factory in China. During the year, Tesla’s super factory has been moving at a rapid pace.

On January 7, 2019, after the foundation ceremony, the factory began to break ground; on August 19th, the first acceptance permit was obtained; on September 19th, the full acceptance was passed; on October 23rd, the production qualification was obtained and the production of Model 3 began; and on December 30, the domestic Model Model was produced. 3 officially delivered to employee owners at the Shanghai plant.

Tesla's Shanghai Plant 1th Anniversary: Speeding Up The Localization of Parts, Focusing on suv market

Musk and Wu Qing (right). Sina Finance /Photos

Before the ceremony began, there was a heavy rain in shanghai’s new area. According to Wu Qing, a member of the Standing Committee of the Shanghai Municipal Committee and deputy mayor of the Shanghai Municipal People’s Government, it was rainy when the Tesla plant opened last year, and he quipped, “Rain is the money.”

He believes that Tesla’s Shanghai Super plant has spent a year creating a new miracle in the development of the automotive industry from construction to production delivery, which is both a fruitful result of practical cooperation between the Tesla team and Shanghai, China, and a classic example of Shanghai’s optimization of the business environment. Tesla’s Shanghai Super plant is a testament to Shanghai’s speed by “starting the year, putting it into production that year, and delivering that year”.

Musk also mentioned that as the largest foreign investment project, the first wholly foreign-owned auto plant, without the support of the Shanghai municipal government can not create such a miracle, it is the good business environment, so that the Tesla Shanghai plant can be built and delivered quickly.

Tesla's Shanghai Plant 1th Anniversary: Speeding Up The Localization of Parts, Focusing on suv market

Chinese made model 3 delivers Musk live dance

Interestingly, at yesterday’s delivery ceremony, Musk was in a good mood, dancing excitedly, bringing an impromptu dance to the scene.

While thanking Tesla’s Chinese employees and owners, Musk also offered a vision for more models to be put into production here in the future, in addition to the Model 3 and Model Y, and to sell them around the world, with the Chinese-designed Tesla being born here. Wu Qing also expressed the hope that Tesla can introduce more new models, new projects, to support the development of shanghai’s new area.

Family cars and SUVs market

In addition to the Model 3 delivery ceremony, the Launch Of Model Y was also very interesting.

‘Model Y is committed to building Affordable SUVs, mainly to meet the needs of consumers who prefer SUV models,’ Musk said at the ceremony, as the Model 3 was about building affordable family cars, both of which are important to Tesla.

At the same time, he thinks Model Y could sell more in the future than all other Tesla models combined. Musk said he was looking forward to Model Y’s advanced manufacturing technology.

Not only that, but Tesla also attaches great importance to charging piles. On December 20, 2019, Tesla was built its 300th supercharge station in mainland China, which has covered more than 140 cities, exceeded 2,300 super charging piles and exceeded 2,100 destination charging piles.

According to Wu Qing, the current auto industry in Shanghai has reached a trillion-level development scale, of which, the construction of major new energy vehicles in recent years is accelerating, the promotion and application of new energy vehicles accumulatively exceeded 300,000 vehicles, in the country and even the world are in the leading level.

According to him, Shanghai has now opened 90 kilometers of intelligent network car test roads, 18 enterprises issued a total of 57 test licenses, effective test mileage has been more than 140,000 kilometers. Shanghai has taken the lead in the demonstration application of intelligent network-connected vehicles in the country, launched the Yangshan Port, Donghai Bridge intelligent network re-card test, and promoted the Yangtze River Delta intelligent network car test mutual recognition service, and promote the exploration of intelligent network car commercial application and cross-regional collaborative development.

Lower prices to disrupt the new energy vehicle market?

In addition to the launch of the new model, the price cut is also the focus of much debate on Tesla.

Over the weekend, Tesla announced that the base price of the Chinese-made Model 3 was cut to 323,800 yuan from 355,800 yuan, including the basic ride-assisted feature. Not only that, according to national policy, the entire Model 3 can be exempted from the purchase tax, and enjoy 24.75 million yuan of new energy subsidies, the final domestic Model 3 standard battery upgrade price of 299.05 million yuan, reduced to 300,000 yuan.

As soon as the announcement of the price cut came out, Tianfeng Securities, Societe Generale and other domestic brokerages immediately held a conference call to interpret Tesla’s price reduction signal.

Societe Generale expects domestic Tesla production to exceed 150,000 vehicles in 2020 as production shifts increase. Domestic M3 is expected to become a phenomenon-level products, optimistic about the Tesla industrial chain.

Tianfeng Securities said that MODEL 3 this definitive import into China’s supply chain, the future in the cost reduction at the same time, the expected end of the domesticization rate from 30% to 100%.

Song Gang, head of manufacturing at Tesla’s Shanghai plant, told the media at the ceremony yesterday, “At present, the localization rate of parts at Tesla’s Shanghai plant is about 30%, and plans to increase to 70%-80% by July 2020.” “With the increase in the localization rate of domestic Model 3 parts, there will be further down-to-the-bottom market prices.

The current electric car market mainstream models, the price is roughly distributed between 150,000 yuan to 250,000 yuan, and Tesla’s price cuts will undoubtedly have a knock.

It is worth mentioning that last year, the sharp decline of new energy subsidies, resulting in a sharp decline in the domestic new energy market. New energy vehicle sales in November 2019 were 95,000, down 41.3 percent from a year earlier, according to Oriental Wealth Choice.

By contrast, Tesla achieved nearly 105,000 vehicle seists and about 112,000 vehicle deliveries in the fourth quarter of 2019, according to the latest information released by Tesla. In 2019, Tesla delivered about 367,500 vehicles, up 50 percent from 2018 and met its full-year target.