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Tesla
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Tesla to design, build ‘original’ electric cars in Shanghai, Berlin, giving its offshore operations clout to compete on rivals’ turf

  • CEO Elon Musk says Shanghai and Berlin factories to make new car models, according to his Twitter feed
  • Model 3 is outselling its nearest rival by three to one since Tesla started selling in the mainland Chinese market in January

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Tesla’s Gigafactory 3 factory seen in this aerial photograph taken in Shanghai in February 2020. Photo: Bloomberg
Daniel Ren
Tesla plans to design and assemble new car models in Shanghai and Berlin, giving the offshore operational centres outside its Palo Alto, California head office more clout to offer electric cars that track more closely to local consumer preferences.

Chief executive Elon Musk confirmed in a response to a tweet about the factories that Tesla was preparing to build two new and differing car models at the facilities. “Both will do original cars,” he said on Monday.

The statement portends heated competition in China, the world’s biggest new-energy vehicle market, after a number of Chinese rival producers shored up their capital through stock offerings to fund new model development and expand production lines to catch up with the global leader. Europe, with a strong consumer preference for energy efficient vehicles, is also a key market for Tesla.

Tesla rolled out Model 3 sedans in January from its US$2 billion Gigafactory 3 facility in Lingang outside Shanghai. In the short span of time, the locally built model has become a top-selling car in the mainland market by outselling its nearest rival BYD by three to one.

CEO Elon Musk says both its Shanghai and Berlin factories will make new original cars. Photo: Reuters
CEO Elon Musk says both its Shanghai and Berlin factories will make new original cars. Photo: Reuters

The California-based carmaker cut the price of Model 3 in April with a standard-range battery pack to 271,550 yuan (US$39,817) after subsidies, from 299,050 yuan. The cut fuelled demand from wealthy Chinese fans with a penchant for luxurious cars to boost their social status.

They helped propel the delivery of Model 3 to 14,954 units, giving Tesla a 23 per cent share of the pure electric car segment, according to the China Passenger Car Association (CPCA). BYD, one of the oldest producers based in Shenzhen, came a distant second, with the sale of 4,106 units of Qin EV3 model.

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