Friday, 26 July 2019 18:17

The Model Y and Gigafactory 3 Heralds a Faster, More Profitable Tesla

Written by Simon Alvarez, Teslarati.com
Gigafactory 3 Model Gigafactory 3 Model Gene Liu/Teslarati


Tesla’s second-quarter report and its succeeding earnings call provided updates on what could very well be two of the electric car maker’s most pertinent projects to date: the Model Y ramp and Gigafactory 3 in Shanghai, China.




When Elon Musk unveiled the Model Y last March, he provided a rough timeline for the upcoming vehicle. During his presentation, Musk mentioned that the all-electric midsize SUV would start deliveries starting fall 2020 for the Long Range, Dual Motor AWD, and Performance versions, and spring 2021 for the Standard variant.


Since then, several reports have emerged which hinted at Model Y production being far less volatile and challenging than the Model 3’s manufacturing ramp, a task so difficult that Musk candidly called the period as “production hell.” In the Q2 Update Letter, Tesla confirmed that preparations for Model Y production have begun in the Fremont, CA, factory. The company also mentioned that due to the overlap in the components of the Model Y and the Model 3, the company was able to “leverage existing manufacturing designs in the development of the Model Y production facilities.”


Several other hints have also emerged suggesting that Tesla will ramp the Model Y with its best technologies available. Considering all the innovation that is being implemented for the Model Y, it appears that Tesla is doing all it can to ensure that the vehicle does not encounter delays with its rollout. In fact, with Fremont already being prepared for the Model Y, and with giant casting machines being designed specifically for the vehicle, it almost seems like Tesla is trying to start the manufacturing of the SUV earlier than expected.




Over in China, another understated Tesla project is taking shape. When Musk attended Gigafactory 3’s groundbreaking ceremony back in January, he stated that initial production of the Model 3 in the facility would begin by the end of the year. Six months later, Gigafactory 3’s general assembly building is practically complete and its interior is already being tooled.


Quite interestingly, it is not Musk that is providing ambitious timeframes for Gigafactory 3 anymore.

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