Giga Shanghai

  (Redirected from Gigafactory 3)

Tesla Giga Shanghai (Chinese: 特斯拉上海超级工厂, or Gigafactory 3)[3] is a factory in Shanghai, China operated by Tesla, Inc.[4] The facility is currently producing final assemblies of the Tesla Model 3 and will produce Tesla Model Y, with Y deliveries slated to begin in January 2021. The factory initial production rate target is 3,000 cars a week, eventually reaching 250,000 electric cars per year.[5][1] The initial assembled Model 3 were first delivered in December 2019,[6] just twelve months after beginning site grading on the gigafactory in December 2018.[7]

Tesla Giga Shanghai
Giga Shanghai is located in Shanghai
Giga Shanghai
Gigafactory 3 on Shanghai peninsula
LocationLingang, Pudong, Shanghai, PR China
Coordinates30°52′N 121°46′E / 30.87°N 121.77°E / 30.87; 121.77Coordinates: 30°52′N 121°46′E / 30.87°N 121.77°E / 30.87; 121.77
Products
Employees2,000[2]
Area864,885 m2 (9,300,000 sq ft)[1]
Address浦东新区南汇新城镇同汇路168号D203A[1]
Owner(s)Tesla (Shanghai)

The Shanghai regional government approved the agreement to build the production facility in July 2018, and a long-term lease was signed for about 86 hectares (210 acres) of land in October 2018.[1][8] Construction began in December 2018 with the installation of secure fencing and site offices. The General Assembly Building was nearly complete by August 2019, and manufacturing line equipment was being installed for both batteries and automobiles. The plant began initial production of Tesla Model 3 cars in October 2019,[9] with additional production facilities for motors, seats, and powertrain assemblies under construction in late 2019 with expected completion by March 2020.[10][unreliable source?]

Tesla is also building engineering and design teams in China.[11]

DescriptionEdit

The factory site is within Pudong District, with the western edge bordering Fengxian District.

HistoryEdit

BackgroundEdit

The Tesla (Shanghai) company was formally established 8 May 2018, with an authorized capital of 100 million yuan, wholly owned by Tesla Motors Hong Kong.[12] In July 2018 Tesla CEO Elon Musk signed an agreement with the Shanghai regional government to build its third Gigafactory, and the first in China.[13]

On 8 August 2018, compulsory purchase order Shanghai [2018] No. 090 was issued by Pudong New Area Planning and Land Administration, with a closing date for objections of 14 August 2018, and finalization scheduled to occur on 20 August 2018.[14] On 26 September 2018, the bidding process for the newly acquired plots Q01-05 in the area designated as 04PD-0303 were advertised, with the restriction that the land be used for electric car manufacturing, with a minimum investment requirement. The investment requirement of 10.85 million yuan per (per 666.7 m2 or 7,200 sq ft) equated to a total minimum investment of 14 billion yuan ($2 billion US).[15][16]

Land purchaseEdit

The bidding process ran between 17‒26 October 2018, with the proviso that if there was only one bidder meeting the requirements by 11:30[clarification needed] on 17 October 2018, then the process could be closed and finalized early.[15] Tesla won the long-term lease for 86 hectares (210 acres) of land in Lingang, Shanghai on 17 October.[8][17][18]:5:21 Tesla (Shanghai) was the only bidder, with its bid of 973 million Chinese yuan for the 50-year lease covering the 864,885-square-metre (86.5-hectare) site, with the capital coming from local Chinese banks.[19] The Shanghai Land Transfer contract No. 14 with Tesla (Shanghai) required construction work to begin within 6 months, and be completed within 30 months, with production started after 36 months, and full minimum tax revenues being paid after 60 months.[20] The Land Transfer was scheduled to occur on 12 December 2018, and limits the maximum size of above-ground buildings to 1,729,770 square metres (18,620,000 sq ft) in area [sic] with a maximum height of 30 metres (100 ft).[21] Up to 60,541 square metres (650,000 sq ft) of the area can be used for non-production office buildings.[21] Phase 1 of the project will manufacture Tesla Model 3 and Tesla Model Y cars, with a target production rate of 250,000 electric cars per year.[1] Tesla stated that it planned to eventually be able to produce 500,000 electric vehicles per year at the site.[8][17]

The public environmental impact consultation for Phase 1 of the project was opened on 24 October 2018 and scheduled to run for ten working days.[1]Capital expenditures covering the land purchase and initial design costs for Gigafactory 3 were scheduled to occur in the fourth quarter of 2018.[22] The purchase was aided by a loan from Chinese banks, and converted to a $1.4 billion loan in late 2019, also by Chinese banks.[23]

ConstructionEdit

A construction permit was granted by the Shanghai municipal government authorizing work to begin after 29 December 2018. The project contractor is China Construction Third Engineering Bureau Co., Ltd., part of China State Construction Engineering, a large state-owned construction company.[24]

By December 2018, construction activity at the site was underway with site grading.[7] Shanghai Mayor Ying Yong visited the site on 5 December.[25][26] A subsidiary of China Minmetals was making preparations for piling foundations.[27] Shanghai Construction Group was one of the companies bidding for part of the larger construction contract.[27]

On 7 January 2019 the groundbreaking ceremony was held.[28] By March, foundation work in some areas of the large facility was in place and structure is being erected, with crews operating at the site on multiple shifts to accelerate construction.[29]

By early August 2019, the building exteriors were nearly complete, and the general assembly building was being fitted with manufacturing equipment, with a target to begin production in November.[30] The plant received its "comprehensive acceptance certificate" on 19 August.[31]

In the 3Q2019 quarterly investor call on 23 October 2019, Tesla reported that it is ahead of schedule with getting the factory into production. Moreover, it was built in just ten months, is ready for production, and was built for approximately 65% less capital expenditure per unit of manufacturing capacity than had been the Model 3 production system in the US. General assembly of the initial Tesla Model 3s was operating by October 2019,[9] with 30% of the car coming from China.[32]

ProductionEdit

Giga Shanghai currently does final assembly of Model 3 vehicles which began in December 2019, with expectation to begin Model Y final assembly later in 2020. While initially, assembly is accomplished with parts and subassemblies that are shipped into the factory from the US, a major push during 2020 will be to gradually increase the "Made in China" (MIC) content in the car as Tesla China manufacturing matures.[33] As of March 2020, MIC Model Y production is slated for January 2021.

Transport truck trailer rigs moved cars out by early December 2019,[34] and the first 15 cars from the new factory were delivered on 30 December 2019, to Tesla employees.[35] The first cars to be produced at the Gigafactory and delivered to Chinese customers were delivered on 7 January 2020.[36][37] Production rate was approximately 1,000 cars per week in early 2020,[38] made by a single shift of workers[39] with a total production line capacity of 2,000 cars per week when Saturday overtime is included.[33] Preliminary plans indicate Tesla could add a second shift of production by the beginning of 2Q2020 which would increase line capacity to approximately 3500 vehicles per week.[33]

The gigafactory Shanghai was temporarily shut down for approximately two weeks by order of the government on 29 January 2020 due to the COVID-19 pandemic.[40] Production resumed 10 February, as did for suppliers and other companies around the country.[41] Several precautions were taken to prevent virus spread.[42]

Production line capacity of Giga Shanghai is aimed at 5,000 cars per week, and if achieved and sustained could result in an annual capacity of more than 250,000 vehicles.[33][unreliable source?]

See alsoEdit

ReferencesEdit

  1. ^ a b c d e f g h 上海达恩贝拉环境科技发展有限公司 (24 October 2018). "特斯拉上海超级工厂项目(一期)环境影响评价公示" [Tesla (Shanghai) Gigafactory Project (Phase 1) Environmental Impact Assessment Publicity] (in Chinese). 上海市环境保护宣传教育中心. Archived from the original on 24 October 2018. Retrieved 24 October 2018.
  2. ^ TESMANIAN. "Tesla Giga 3 Phase 2 in Shanghai Major Preparatory Project, Gov Helps Resumes Production". TESMANIAN. Retrieved 2020-03-29.
  3. ^ Musk, Elon [@elonmusk] (2020-01-25). "Going with nomenclature of Giga [most widely understood location name] vs Giga #, so Giga Shanghai, Giga Nevada, Giga New York & Giga Berlin" (Tweet). Retrieved 2020-01-26 – via Twitter.
  4. ^ Alan Ohnsman (Jul 10, 2018). "How Is Musk Going To Pay For Tesla's Chinese Gigafactory?". Forbes.com. Archived from the original on July 18, 2018. Retrieved July 17, 2018.
  5. ^ Li, Fusheng (31 October 219). "Shanghai helps fuel Tesla's electric car dreams - Chinadaily.com.cn". global.chinadaily.com.cn. Retrieved 14 May 2020.
  6. ^ China, Tesla (2019-12-29). "Tesla will deliver the first China-made Model 3 at Gigafactory 3 plant in Shanghai TODAY. The 15 customers who are slated to get their Model 3s first are Tesla employees.pic.twitter.com/bOTeR8wjUL". @teslacn. Retrieved 2019-12-30.
  7. ^ a b Alvarez, Simon (17 December 2018). "Tesla Gigafactory 3 construction in China begins with rapid buildout of perimeter fence". Archived from the original on 19 December 2018. Retrieved 19 December 2018.
  8. ^ a b c "Tesla inks deal for Gigafactory 3 in China". techcrunch.com. Archived from the original on 17 October 2018. Retrieved 17 October 2018.
  9. ^ a b Kolodny, Lora (23 October 2019). "Tesla shares soar after crushing third-quarter earnings". CNBC. Retrieved 23 October 2019.
  10. ^ Jason Yang (29 November 2019). "Tesla Gigafactory 3 in Shanghai Construction Update". Tesla GigaFactory 3 Shanghai Updates. Retrieved 2 December 2019.
  11. ^ Elon Musk [@elonmusk] (24 September 2019). "Tesla is building a major engineering team in China, incl heavy focus on software/firmware for factory & car" (Tweet) – via Twitter.
  12. ^ "特斯拉獨資在浦東注册成立公司" [Tesla establishes wholly-owned subsidiary in Shanghai Pudong]. 上海浦東門戶網站 發. Pudong. 15 May 2018. Archived from the original on 23 October 2018. Retrieved 23 October 2018. 特斯拉(上海) 有限公司注册資本 1 亿元,股東為特斯拉汽車香港有限公司,公司成立日期為
  13. ^ "Tesla Plots Bold China Factory Move, Stays Silent on Cost". Bloomberg. Archived from the original on 19 July 2018. Retrieved 19 July 2018.
  14. ^ Shanghai Planning and Land Resources Administration (8 August 2018). "沪〔浦〕拟征地告[2018]第090号" [Shanghai [Pudong] proposed land acquisition [2018] No. 090] (in Chinese). 上海市规划和国土资源管理局 [Pudong New Area Planning and Land Administration]. Archived from the original on 23 October 2018. Retrieved 23 October 2018.
  15. ^ a b 包雨朦 (12 October 2018). "特斯拉上海工厂选址浮出:临港86万平方米造车用地挂牌出让" [Tesla Shanghai factory site is under tender: 860,000 square meters of car-manufacturing land for sale in Lingang]. 澎湃新闻. Archived from the original on 18 October 2018. Retrieved 18 October 2018.
  16. ^ Shanghai Planning and Land Resources Administration (2018-09-26). "地块公告号:201813801" [Land parcel: 201813801]. Archived from the original on 2018-10-18. Retrieved 2018-10-18. 临港重装备产业区 04PD-0303单元Q01-05地块四至范围: … 东至规划预留东海二桥控制线绿化带, 南至人民塘绿化带, 西至南奉界河绿化带, 北至老里塘河绿化带 … (平方米): 864885.0 … 出让年限50竞得价(万元): 97300.0 … 竞得人特斯拉(上海)有限公司
  17. ^ a b "Tesla secures 210-acre land for Gigafactory 3 in China, says 'on track' with accelerated construction plan". Electrek. 17 October 2018. Archived from the original on 18 October 2018. Retrieved 17 October 2018.
  18. ^ Chris Lister, VP of Gigafactory; Jat Dhillon, Director of Manufacturing (30 November 2018). This is Elon Musk's key to Tesla's future (video). The Verge. Archived from the original on 1 December 2018. Retrieved 2 December 2018 – via YouTube.
  19. ^ Hancock, Tom; Ju, Sherry (18 October 2018). "Tesla pays $140m for lease on first non-US factory in Shanghai". Financial Times. Archived from the original on 18 October 2018. Retrieved 18 October 2018.
  20. ^ Shanghai Planning and Land Resources Administration. "沪规土资(2018)出让合同第14号" [Shanghai Regulation Land Transfer (2018) Contract No. 14] (in Chinese). Archived from the original on 23 October 2018. Retrieved 23 October 2018.
  21. ^ a b Shanghai Planning and Land Resources Administration. "沪规土资(2018)出让合同第14号 (1.0版)" [Shanghai Regulation Land Transfer (2018) Contract No. 14, Version 1.0] (contract) (in Chinese).[permanent dead link]
  22. ^ "Tesla Third Quarter 2018 Update". Tesla. 24 October 2018. p. 5. Archived from the original on 24 October 2018. Retrieved 24 October 2018. Q4 capex projection includes the purchase of land in China and initial design and other expenditures for Gigafactory 3.
  23. ^ "Tesla to take new $1.4 billion loan from Chinese banks for Shanghai factory - sources". Reuters. 23 December 2019. Archived from the original on 2019-12-23.
  24. ^ Alvarez, Simon (3 January 2019). "Tesla's Gigafactory 3 in China starts preparations with 6-month construction permit". Teslarati. Archived from the original on 7 January 2019. Retrieved 6 January 2019.
  25. ^ City of Shanghai (5 December 2018). "中芯、特斯拉、积塔……应勇今天调研了这些重大投资项目!" [SMIC, Tesla and Jita … Ying Yong visted these major investment projects today!] (Press release) (in Chinese). Archived from the original on 13 May 2019. Retrieved 5 December 2018.
  26. ^ Cheng, Evelyn (5 December 2018). "Tesla's China factory is set to begin production late next year, Shanghai government says". CNBC. Archived from the original on 6 December 2018. Retrieved 5 December 2018.
  27. ^ a b "Hit by trade war, Tesla opens bid process to build China Gigafactory". South China Morning Post. 6 December 2018. Archived from the original on 6 December 2018. Retrieved 17 December 2018. Shanghai Construction Group is among several firms bidding … Shanghai Baoye Group, a China Minmetals subsidiary, is preparing for the delivery of a large amount of concrete pipe piles and steel pile tips in the second half of December [2018]
  28. ^ "Tesla CEO Musk breaks ground at Shanghai Gigafactory to launch China push". 7 January 2019. Archived from the original on 19 January 2019. Retrieved 19 January 2019.
  29. ^ Alvarez, Simon (26 March 2019). "Tesla's Gigafactory 3 buildout hits overdrive as China's workforce mobilizes 24/7". Archived from the original on 26 March 2019. Retrieved 26 March 2019.
  30. ^ "Tesla Releases New Photo Of Gigafactory 3 In China, Drone Video Shows Massive Factory". 6 August 2019. Archived from the original on 2019-08-08. Retrieved 10 August 2019.
  31. ^ https://www.teslarati.com/tesla-gigafactory-3-acceptance-certificate-inspection-record-time, 20 August 2019.
  32. ^ "Tesla lowers price of China Model 3 to undercut BMW and Mercedes in strategic play". TESLARATI. 3 January 2020.
  33. ^ a b c d Suba, Randall (9 March 2020). "Tesla Giga Shanghai Update: Projected 2021 production, Model Y delivery schedule, Model 3 Long Range". Retrieved 10 March 2020.
  34. ^ Tesla Made-in-China Model 3 first deliveries imminent as carriers spotted leaving Gigafactory 3, Teslarati, 8 December 2019, accessed 9 December 2019.
  35. ^ China, Tesla (2019-12-29). "Tesla will deliver the first China-made Model 3 at Gigafactory 3 plant in Shanghai TODAY. The 15 customers who are slated to get their Model 3s first are Tesla employees.pic.twitter.com/bOTeR8wjUL". @teslacn. Retrieved 2019-12-30.
  36. ^ https://twitter.com/Tesla/status/1214488420770181121
  37. ^ "Tesla delivers first Chinese-made Model 3 to customers | The Star". thestar.com. Retrieved 2020-01-23.
  38. ^ Lambert, Fred (2020-02-12). "Tesla is going to make discontinued Model 3 Long Range RWD in China, already produced over 2,000 cars this year". Electrek.
  39. ^ "Projected 2021 production, Model Y delivery schedule, Model 3 Long Range". TESLARATI. 9 March 2020.
  40. ^ "Tesla says China has ordered its Shanghai factory shut down over coronavirus fears", The Verge, Jan 29 2020, https://www.theverge.com/2020/1/29/21114377/tesla-coronavirus-delay-production-factory-china
  41. ^ "China Focus: Back to work, enterprises gradually resume operation amid epidemic outbreak - Xinhua | English.news.cn". www.xinhuanet.com. Xinhua News Agency. 2020-02-10.
  42. ^ Alvarez, Simon (17 March 2020). "Tesla China shares Giga Shanghai safety measures against COVID-19 virus". TESLARATI.

External linksEdit