Tesla China-made vehicles expected in September: Report

Tesla has reportedly sent out a dozen of its US-based staff members to its Shanghai plant to speed up the completion of its manufacturing base in China.

The first Model 3 car manufactured by Tesla's Shanghai plant is planned to be delivered in September, Tencent news reported on Thursday, citing people familiar with the situation.

The luxury electric car maker is accelerating the construction of its Shanghai plant in China, which has already dispatched more than 10 Tesla staff to the first Chinese factory to supervise the progress of the project, according to the report.

However, due to the delay in construction of some municipal facilities around the manufacturing plant, the actual delivery of the Model 3 could be delayed, but it will arrive no later than the end of this year, the report added.

SEE: Tech and the future of transportation (ZDNet special report) | Download the report as a PDF (TechRepublic)  

Tesla has plans to produce 3,000 Model 3 sedans each week in its Shanghai plant once the Chinese factory commences work, Chinese media had reported in November last year. The US car brand aims to eventually boost Model 3 production to about 10,000 units per week, meaning nearly one-third of the vehicles would be made in China in the near future.

Since Tesla's opening ceremony for the Shanghai factory on January 7, the Chinese factory has been under construction, with some buildings already completed, the Tencent report said. It also added that the Shanghai plant will perform four major processes for automotive manufacturing, including stamping, welding, painting, and final assembly.

Tesla's Shanghai operation will become the largest foreign investment manufacturing project in the city, the Shanghai government announced in July 2018. The super factory is wholly owned by Tesla, and is eyeing a production capacity of 500,000 vehicles each year, according to the local government.

China is the world's largest automobile market. Locally assembled vehicles could effectively lower the retail prices of Tesla in the country due to the notable decrease in taxes and logistics expenses.

Various local governments have also created incentives like cash rebates and subsidies to encourage the sales of electric cars in China. Tesla is also facing competitions from several local electric car makers, including BYD, NIO, and Xpeng.