PALO ALTO, USA / TOKYO – Tesla Motors, the world’s largest vehicle manufacturer, has continued to grow as CEO Elon Musk aggressively launches the world’s largest vehicle market in China.
In early January, Tesla began delivering its main style 3 to consumers from a new “gigafactory” in Shanghai. On one occasion that marked the first delivery of the plant, Musk said the US company had made faster-than-expected progress in China. He celebrated by appearing a few dance steps.
The Shanghai plant is Tesla’s moment meeting plant and the first outdoor plant in the United States. “It takes two years” to start operating a new car plant, said Tang Jin, director of Mizuho Bank’s external industry relations department.
Tesla’s agile and simple control taste explains how the Shanghai gigafactory got off to a wonderful start. Unlike its first plant, which was built on the site of an old joint venture between Toyota Motor and General Motors in Freemont, California, the Shanghai plant was designed from scratch. The new plant has an undeniable structure, adding a direct meeting line that incorporates all the necessary steps to build Tesla cars.
The Shanghai plant “appears to be built with a low value as a whole, for other automakers’ factories,” said an executive at a Tesla portion supplier.
In addition to overseeing the structure of the plant, Tesla installed stamping and welding machines, a meeting line and other appliances to speed things up. The fact that electric cars require fewer portions and do not require complex motor seals has further accelerated the final touch of the plant.
Tesla’s close ties to the Chinese government have also helped. Prime Minister Li Keqiang met with Musk shortly after the structure began, assuring him that China would grant him an apartment permit, demonstrating Beijing’s preference for simplifying the life of the company. Musk said he never expected the formalities to be completed so quickly.
Tesla has invested about $2 billion in the Shanghai gigafactory, which plans to increase its annual production capacity to 200,000 cars in the future. Tesla can now build new plants much faster than before, at a lower cost, said Jerome Guillén, head of the company’s automotive division.
With Chinese government subsidies helping reduce its costs, Tesla’s total investment in the plant is estimated at a third of what he spent at the Fremont plant, Tang said.
Tesla was founded in 2003, launching the luxury sedan Model S for the first time. In 2017, it launched the smaller client 3 style.
Based in Palo Alto, California, Tesla suffered a loss of $862 million in sales of $25 billion in the fiscal year ended in December 2019. It sold 367,500 electric cars that year, capturing a 22.3% percentage of the global market, according to LMC Automotive. an analyst in the British automotive industry.
Thanks to its strong loyalty to the logo, Tesla has noticed that its market capitalization outweighs Toyota’s. Its percentage value has increased sixfold during the previous year.
Tesla took about 15 years to succeed in total sales of 500,000 vehicles, but only 15 months to double that figure. In addition to the Shanghai gigafactory, the company is building new plants in Germany and the United States.
Tesla plans to increase its global capacity through 40% to 1 million cars consistently with the year through 2021, with the goal of joining the ranks of mass automakers.
According to Tokyo-based specialist MarkLines, Tesla sold some 31,000 cars in China between April and June, tripling last year. But the U.S. market still accounts for more than a portion of the company’s unit sales.
To maintain its immediate growth, Tesla will need to capture a significant percentage of China’s electric vehicle market, which is expected to continue to grow, along with that of Europe, as environmental regulations tighten.
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