TMTPost --  Tesla’s manufacturing base in China achieves a milestone on September 28.

Credit：Tesla

Tesla exported the 1 millionth electric vehicle (EV) from Gigafactory Shanghai, the company confirmed reports from multiple Chinese media outlets at a post on social media X. The 1 millionth vehicle made in China for exports rolled off the production line in the assembly workshop of Model 3 model in the Gigafactory on September 28, and the batch of Model 3 vehicles were shipped from Shanghai's Nangang Port to the United Kingdom the same day.

The shipment marked Tesla’s total EV exports from China hit 1 million units in less than four years. Since its first export of 7,000 Model 3 vehicles to Europe in October 2020, the Shanghai facility has become a testament to China's substantial manufacturing capabilities. The factory now produces both Model 3 and Model Y vehicles for export to markets across Europe and the Asia-Pacific region, and exports account for around one third of the factory’s capacity.

"Today, the one-millionth exported China-made Tesla car sets sail from Shanghai's Nangang Port. In just four years since the first batch of vehicles was exported, Tesla cars made in China have been sold in Europe, Asia-Pacific, Australia, and New Zealand, earning high recognition in overseas markets," Tao Lin, Tesla's vice president, wrote on Chinese microblogging platform Weibo at weekend.

Tesla also received recognition of Model 3 for its design at the "Shanghai Design 100+" press conference on September 28. Selected from 2,745 entries across 19 countries, the Model 3 design secured a coveted spot in the top 100 list for 2024.

Gigafactory Shanghai has been developed into Tesla’s first wholly self-designed manufacturing plant. The factory boasts workshops integrating four major processes of vehicle manufacturing--stamping, welding, painting, and final assembly "under the same roof". Tesla claimed a new vehicle is off the assembly line in the Shanghai factory at approximately 30 seconds, which was described by Chinese media outlets as the "Tesla speed" of producing. It also said the factory has more than 95% localized supply chain. In a factory tour at Gigafactory Shanghai in July, Tesla told reporters deployment of robotic arms brings the factory up to 95% fully automated production, and the automation rate of its welding workshop is close to 100%.

Tesla’s Megapack battery factory in Shanghai's Lin-gang Special Area is also under rapid construction. As of the end of September, more than 60% of the main plant building has been completed , and the factory is expected to put into production in the first quarter of 2025. The factory plans to produce 10,000 Megapacks, or large-scale rechargeable lithium-ion battery stationary energy storage products, annually, with a total storage capacity of nearly 40GWh. The new factory aims to supply the global market and further establish Chinese intelligent manufacturing as a prominent brand on the international stage, Tesla said.

Tesla’s Shanghai facotry is facing new elevated tariffs on EVs in the Europe. The European Commission disclosed in August its draft decision to impose definitive countervailing duties on imports of battery electric vehicles (BEVs) from China to interested parties.The regulatory body proposed to add up to 36.7% to the current 10% duty faced by Chinese exporters, modestly lowered from the initial maximum planned duty of 37.6% set in the start of July. 

Based on the latest draft decision,Tesla appears to be the big winner as the European Union will impose an extra 9% tariff on Tesla EVs originated from China, much lower than the 20.8% under the provisional duties that took effect in July.  The EU is set to marginally downgrade its additional tariff rates proposed for EVs that Tesla Inc. and other automakers import from China due to new information that companies have provided, Bloomberg reported in September, citing people familiar with the matter. It is reported that Tesla’s proposed tariff rate will drop to 7.8% from 9%.