Tesla has received permission from the Shanghai Lingang Area Construction and Development Management Committee to begin its Chinese factory’s expansion project. A place where its most economical model will come from—a proposal that will place its price at around $20,000 and whose presentation date is even rumored.
According to the Chinese media, this new permit represents the start of Phase 2 for the factory, where the new model’s production would begin. Tesla’s environmental impact report shows that manufacturing processes such as stamping, painting, welding, and final assembly of electric vehicles have been added to the project. Upon completion, the project will add manufacturing facilities for the Model 3, Model Y, and “related derivative models.”
The project will carry out tests related to the launch of a new model, more than possibly associated with the economic model, in addition to research work, including trials of important equipment and manufacturing processes. According to the document, the test cycle is approximately six months for verification, coordination of parts and functions, etc.
If confirmed, this would mean that the production line would be ready in the second half. This mean it could start assembling vehicles before the end of the year, just before the end of 2021, when a proposal should be presented to begin deliveries in early 2022
The unofficially named Model 2, will allow Tesla to cement a foundation that will expand its range in a variety of segments, which will enable them to have more flexibility to meet the needs of the market at all times with an increasingly high volume which will have a significant impact on production costs.