Tesla Giga Shanghai Phase 2 Construction Ramps In Preparation for Model Y Production

Tesla Giga Shanghai’s Phase 2 construction continues to ramp in preparation for Model Y production. Tesla Giga Shanghai sales are expected to contribute to the company’s Q2 2020 numbers significantly. Demand for the MIC Model 3 SR+ and its Long Range RWD variant appears to be healthy. Demand for the Model Y, however, could overshadow both the MIC Model 3 SR+ and the Long Range RWD. 

Wuwa Vision’s latest video showed that construction on Giga Shanghai’s Phase 2 buildings is still rapidly progressing. A part of the building looked like the roof trusses were already in place. Based on past Giga Shanghai’s other construction projects, Tesla China appears to be building the shell of Phase 2 before working on the interior. 

Giga Shanghai Phase 2 will most likely house the Model Y production line. The SUV market in China is one of the biggest in the world, besides the United States and Germany, so there are high expectations for MIC Model Y demand. 

According to Statistica, the SUV segment in the global auto industry has been growing rapidly since the early 90s. In 2019, about 200 million SUVs were sold around the world. The Model Y’s more affordable price might be an advantage for Tesla in the SUV market, especially in China. 

Thus far, the Chinese government has been supportive of Giga Shanghai and Tesla China. This April, the number one bank in the country—the Bank of China—ran a special promotion for the MIC Model 3 SR+. Bank of China cardholders could avail of the promo, which included paying 0% to low interest for 2-5 years. 

Recent pictures from Beijing’s DMV hint that demand of the MIC Model 3 has remained strong despite the pandemic. But it is unclear whether there is a correlation between Model 3 demand and Tesla’s promotion. Either way, however, the Chinese auto market seems ripe for the Model Y. 

Model Y demand could also be bolstered by the Chinese government’s move to strengthen the country’s infrastructure for electric vehicles. For example, China plans to spend RMB10 billion to build more EV charging stations throughout the nation. 

Featured Image Credit: Wuwa Vision/YouTube and @jsrdctz/Twitter