Tesla Shanghai makes Model Y body every 40 seconds

Tesla’s Shanghai Gigafactory produces a Model Y ‘body-in-white’ every 40 seconds on average, according to the Chinese government’s publication People's Daily.

The American electric carmaker uses more efficient automated ‘Giga casting’ machines that only need to fuse several large metal parts together to form a body, instead of multiple individual pieces.

Reuters reports it recently upgraded the assembly lines of the battery-electric Model Y SUV and related Model 3 sedan in its Shanghai factory – which is where Australian Teslas are sourced from.

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The China plant started production in late 2019, before Australian-bound Model 3s switched its source away from the Fremont, California factory in early 2021.

The one millionth Tesla rolled off the Shanghai factory floor in August last year, less than three years after it opened amid strict COVID-19 health restrictions and lockdowns.

As at the time of writing, new customer orders for the Model Y and Model 3 are only estimated to deliver in two- to four months, despite ongoing supply chain struggles.

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Tesla's Shanghai factory

Tesla even dropped the price of both electric models locally last week, though they were raised on several occasions last year. In China too prices were cut to boost sales momentum in recent days.

A key reason is the Shanghai plant’s localisation rate of more than 95 per cent, according to Teslarati.

Chinese automakers such as Tesla, BYD and Polestar benefit from China’s local supply chain of car components and expensive EV batteries, and cheaper labour costs.

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The top five best-selling EVs in Australia in 2022 were all made in China, with 122,845 vehicles sold last year overall hailing from the country – or nearly three times German-made cars.

Tesla is expected to introduce an even cheaper-to-produce third-generation EV platform in March, with a sub-$40,000 entry-level small car likely.

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