Revamped Tesla Model 3 Deliveries Expected in China by Late September, Reports Indicate

Revamped Tesla Model 3 Deliveries Set for Late September in China

As anticipation builds around Tesla’s upgraded Model 3 sedan, recent developments hint at imminent mass production and deliveries.

(Image: Tesla Model Y)

According to informed sources, Tesla is gearing up to commence mass production and delivery of its enhanced Model 3 in China by the end of September, as reported today by local media outlet 36kr. The updated model showcases comprehensive upgrades to both its exterior and interior, potentially omitting radar systems as well.

While official information from Tesla regarding the new Model 3 remains undisclosed, prospective buyers are already expressing interest in the revamped version, leading to a wait-and-see approach toward the current offering.

A Tesla salesperson commented, “Our main task now is to sell the Model 3 and Model Y with reduced prices, but there are still a lot of customers who choose to wait for the new model, even if it could be more expensive.”

To bolster production capacity, Tesla plans to recommence operations of the phase 1 battery production line at its Shanghai factory, a section that was temporarily shuttered. This relaunch is scheduled for September, facilitating the forthcoming Model 3 production surge.

“Some production line personnel are currently returning to their positions, but some won’t be back, and it’s unclear how much it will eventually be restored,” an insider revealed.

Earlier reports highlighted Tesla’s strategy shift in battery pack production as it approached the upcoming revisions for the Model 3 and Model Y. The shift involved recalibrating its battery pack production approach in favor of increased reliance on suppliers.

The phase 1 battery line, which was temporarily halted within the Shanghai Lingang factory, exemplified Tesla’s cost-conscious strategy in response to heightened market competition.

Recent insights from 36kr also indicated that the projected sales boost from the upgraded Model 3, combined with new orders stemming from price adjustments, prompted Tesla to pivot quickly and prioritize scaling up battery supply.

For electric vehicles, battery cells and modules typically originate from specialized battery manufacturers, while some automakers opt to assemble their own battery packs for enhanced control.

Within Tesla’s Shanghai factory, where battery pack assembly takes place, three battery factories—phase 1, phase 2, and phase 2.2—operate within the Shanghai Lingang premises, as reported by 36kr.

The phase 1 battery factory, though among the earliest established, boasts limited capacity. Due to its relatively low level of automation that no longer meets Tesla’s requirements, it will be replaced by the phase 2.2 facility, which will shoulder some battery pack production responsibilities, according to July’s 36kr report.

The weekly production capacity of the phase 1 battery factory stands between 3,000 and 4,000 battery packs, while phases 2 and 2.2 each contribute around 10,000 packs, as outlined in 36kr’s recent report.

At full capacity, the three battery factories collectively possess the potential to supply nearly 100,000 battery packs monthly.

Tesla’s recent price adjustments, including a reduction of RMB 14,000 ($1,920) for select Model Y versions and an RMB 8,000 insurance subsidy for Model 3 entry-level inventory, exemplify the company’s ongoing efforts to enhance affordability and appeal in the Chinese market.

(Note: Currency conversion rate used: $1 = RMB 7.2890)