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Tesla to Export Made-in-China Model 3 to Europe

September 12, 2020 2:54 am

Beijing (PingWest)—Tesla is preparing to export its made-in-China Model 3 cars to Europe and other markets, according to Bloomberg.

China-built Model 3s for delivery outside the country likely will start mass production in the fourth quarter and shipments could start as soon as the end of this year or early 2021, said the report. Singapore, Australia, and New Zealand, as well as Europe, are included as target markets.

Currently, the company only exports cars from California. The Shanghai Gigafactory said it has the capacity to produce 200,000 vehicles a year, almost 17,000 a month, and 11,800 cars were sold in August in the country.

When Tesla started to build the factory in Shanghai, Elon Musk, founder and CEO of Tesla, promised that the facility would only make lower-priced versions of the Model 3 sedan and Model Y crossover for the Greater China region, and predicted there would be enough local demand to potentially necessitate several factories in the country.

According to Bloomberg data, from January to July, sales of electric vehicles in major European car markets more than doubled over the same period in 2019, leading the growth in 2020.

Although Tesla's sales in several European countries are growing, its total share is still small. “Exporting Model 3s to Europe would take advantage of China’s lower production cost base in a bid to improve profitability,” said Michael Dean, a Bloomberg Intelligence analyst. 

Tesla’s main factory is in Fremont, California, where it assembles the Model S, X, Y and 3. The company is also building a factory in Berlin, its first in Europe. That plant is slated to start production in the summer of 2021.