Tesla Inc is planning to ship vehicles made at its Shanghai Gigafactory to other markets in Asia and Europe, people familiar with the matter said, as the company looks to realize its plan to reduce shipping costs and manufacture vehicles closer to customers.
China-built Tesla Model 3s intended for delivery outside China would likely start mass production in the fourth quarter of the year, the people said, asking not to be identified because the details are private.
They said the markets targeted include Singapore, Australia and New Zealand, as well as Europe, where customers currently have to wait for a Tesla to be delivered from the US.
Shipments could start as soon as the end of this year, or early next year, the people said.
The world’s biggest maker of electric vehicles is stepping up production as competition intensifies, with traditional automakers starting to make electric vehicles, especially for the Chinese market, where local rivals such as BYD Co (比亞迪) already have a strong foothold.
General Motors Co said this week it plans to take a US$2 billion equity stake in electric truck maker Nikola Corp.
A representative for Tesla in China declined to comment.
Tesla’s main factory is in Fremont, California, where it assembles the Model S, Model X, Model Y and Model 3.
The company is also building a factory near Berlin, its first in Europe. Tesla chief executive Elon Musk is pursuing an ambitious timetable, targeting the middle of next year for that plant to start production.
The billionaire entrepreneur has often spoken about his focus on the consumer, saying that he just wants to make vehicles that people want to buy. Manufacturing the vehicles closer to customers would help Tesla reduce costs and speed up delivery times.
Demand for electric vehicles globally is rising, bolstered by tighter emissions regulations in Europe, and an increasing awareness of climate chang.
While the COVID-19 pandemic has dented sales of all vehicles — global electric passenger vehicle sales were down 15 percent in the second quarter of the year — the market for electric vehicles is forecast to expand about 7 percent this year.
Europe has led the growth, with sales in the continent’s main auto markets more than doubling in the first seven months compared with the same period last year, according to BloombergNEF.
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