Addressing the audience, also with senior Shanghai government officials, Musk said he is impressed by how efficient the construction of the local factory and production of the Model 3 cars has been in China.
The chief executive officer walked awkwardly across a stage at Tesla's new facility outside of Shanghai on Tuesday to deliver the first Model 3 sedans to the public.
The positive news from the China factory have also caused a rally in shares of Tesla's Chinese suppliers. He did not give a timeframe.
Tesla Inc. Chief Executive Officer Elon Musk pulls off some dance moves during a ceremony at a new multibillion-dollar plant near Shanghai - its first outside the US - where the American company is handing over the first China-made Model 3 sedans to the public. Given Tesla has yet to finish Gigafactory 3 and has to start production of Gigafactory 4 and Model Y (and presumably the Semi) as well, I have to wonder how much resources Tesla has to commit to yet another vehicle. Also, the number of auto deliveries are tiny in comparison, as GM and Ford delivered in 2019 several million cars in the US alone, compared to Tesla's 367,500 globally.
Tesla also revealed it had started to assemble battery packs from December.
The group's new energy arm, BJEV, is one of the largest electric carmakers in the country, and its EU-series vehicles were second only to Model 3 in volume globally in the first 10 months of previous year, but were much cheaper. Prices could go down further as people familiar with the matter have said Tesla is considering further lowering the price of the sedans by using more local components and reduces costs. The China-made Model 3 sedans are priced at 355,800 yuan before subsidies.
Specifically, Musk said that Tesla is aiming for a production rate of 500,000 cars per year in Shanghai alone.
Tesla will launch a design and engineering centre in China to create a "radical" electric vehicle as groundbreaking as its Cybertruck, according its founder Elon Musk.
Chinese electric-car makers are facing challenges to maintain their pace of growth as the government started rolling back subsidies in June.