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Tesla’s Shanghai Factory Upgrade Slashes Delivery Times

Tesla says the upgrade of its plant in Shanghai has boosted output at its most productive facility and helped to slash delivery waiting times for two of its models


Tesla has ramped up production at its factory in Shanghai and is now aiming to make 22,000 EVs a month.
Tesla has cut waiting times for its Model 3 and Y cars in China, thanks largely to its move to expand the size of its factory in Shanghai. This pic shows a truck carrying new Tesla cars from the plant in eastern China, on May 13, 2021. Photo: Aly Song, Reuters.

 

Tesla finished a major upgrade of its factory in Shanghai, enabling it to slash the delivery waiting time for its Model 3 and Model Y cars in the country.

It now takes four to eight weeks to deliver the rear-wheel drive Model Y sport utility vehicle, while buyers of other versions of the SUV and Model 3 sedans need to wait for 12 to 20 weeks.

Tesla previously said a buyer in China had to wait for eight to 24 weeks after placing an order for the best-selling models.

 

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Tesla confirmed the shortened waiting time, first disclosed on the company’s Chinese website, and cited the output ramp-up in Shanghai was one reason for that.

The automaker usually delivers more of its cars produced in Shanghai to Chinese customers in the latter half of each quarter, which also brings an acceleration in deliveries, the company said.

Tesla has a target of making 22,000 Model 3 and Model Y cars combined each week.

Chief executive Elon Musk has said production is a bigger challenge for the company than demand. It is struggling to increase output in its Berlin and Texas plants, while production losses during a two-month Covid lockdown in Shanghai hurt Tesla’s profit margin in the second quarter.

The company has stopped taking orders for its Cybertruck outside North America, and also for Model 3 Long Range vehicles in the United States and Canada, citing big delivery backlogs.

 

  • Reuters with additional editing by Jim Pollard

 

 

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Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years and has a family in Bangkok.

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