2022 Tesla Model Y begins RHD production as European launch faces setback

Tesla has commenced right-hand drive production of the 2022 Model Y, with initial examples destined for Hong Kong.

The Model Y – which is currently produced in the United States and China – will be sourced from the company’s Shanghai plant for the Hong Kong market, where it went on sale earlier in July ahead of planned deliveries in September.

With the heavily-related Model 3 now manufactured in China for the Australian market, it is likely versions of the electric SUV destined for Australia will also be sourced from China.

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Tesla Model Y interior

Hong Kong pricing suggests the Model Y could command a premium of around $5000 over the Model 3 – which recently received a hefty price cut which pushed pricing below $60,000 for the first time – with identical powertrains to the electric sedan expected. This means the Model Y could launch at around $65,000 plus on-road costs for the entry-level Standard Range Plus.

While representatives from Tesla Australia have yet to confirm official details surrounding the local launch of the Model Y, order books could open as soon as August ahead of a planned on-sale date in late 2021 or early 2022.

However, recent news from Europe could put a dent in Australian launch plans.

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Tesla Model Y interior

According to Automotive News Europe, delays at Tesla’s newest production plant in Germany have led to the automaker halting plans for a September launch of the European-built Model Y as the factory is not operational yet.

Announced by Tesla CEO Elon Musk in November 2019, the facility on the outskirts of Berlin – known as ‘Gigafactory 4’ – was expected to be ready for vehicle production in 2021, with Model Y production “at launch” promised. The factory will also produce batteries, battery packs and powertrains for use in all Tesla vehicles, with the Model 3 and future models also planned for German production.

Problems surrounding ‘complex’ German regulation, red tape and environmental activists have reportedly delayed the targeted July opening date until late 2021 or early 2022.

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Tesla Model 3

To make up for these issues, the first Model Y units handed over to European customers in August or September will be produced in Shanghai.

With the company still waiting on final approval from the environmental authority for the state of Brandenburg, Economy Minister Joerg Steinbach told German news agency dpa “there are no discernible reasons for refusing the approval at the present time.”

In recent months, Tesla has been threatened with fines by the authority after it was accused of installing tanks used to store highly flammable coolant without proper approval.

Sourcing Chinese-built Model Ys for Europe could mean the car will be delayed into 2022 for Australia.

The American-developed Tesla is also facing fresh competition from European electric SUVs, such as the Volkswagen ID.4, Mercedes-Benz EQA and BMW iX3.