Tesla’s Gigafactory 3 in Shanghai is aimed at strengthening its presence in the world’s biggest auto market and minimize the impact of the US-China trade war.
China-made Tesla Model 3 vehicles are seen at the Shanghai Gigafactory of the U.S. electric car maker in Shanghai, China December 30, 2019. REUTERS/Yilei Sun
Tesla Inc will deliver its first China-made Model 3 sedans to the public on January 7 at an event at its Shanghai plant, a representative for the firm told Reuters on Thursday. The Shanghai plant is part of the Silicon Valley automaker’s plans to bolster its presence in the world’s biggest auto market and minimize the impact of the US-China trade war. Fifteen Tesla employees who had purchased the car were the first to take delivery on Monday after the first China-made vehicles rolled off the plant’s production line in October. The deliveries come a year after construction of Tesla’s only plant outside the United States began. Production started in October with a target of 250,000 vehicles per year once the Model Y is added to the line-up.
“As Model 3s roll off Tesla’s Chinese manufacturing facility with local subsidies intact, we believe the US-based focus will need to shift globally for the company,” Canaccord Genuity analyst Jed Dorsheimer wrote in a note to clients. China will be an important market for the company in 2020, said Dorsheimer, who raised his price target on Tesla to $515, the second-highest on Wall Street. The Model 3 is priced at 355,800 yuan ($50,000) before subsidies. Tesla said previously that it wanted to start deliveries before the Chinese new year beginning January 25.