US electric car maker Tesla is planning to produce 3,000 Model 3 sedans each week in its Shanghai plant once the Chinese factory commences work, according to a Sina news report, citing regulatory filings made to the United States Securities and Exchange Commission (SEC) on Friday.
The California-based electric car maker aims to boost Model 3 production to about 10,000 units per week, meaning nearly one-third of the vehicles will be made in China in the near future.
In July, the Shanghai government announced that Tesla would set up a wholly owned super factory in the city with a production capacity of 500,000 vehicles each year, which would also become the largest foreign investment manufacturing project in the city.
China is Tesla’s largest overseas market, where the Model S and Model X are now available for sales. But the ongoing trade friction between the world’s two largest economies, the US and China, is clouding business prospects.
The retail prices of Tesla cars increased by between 139,000 yuan ($20,172) and 256,000 yuan ($37,151) on July 7, as China has imposed an additional 25 percent tariff on US goods to counterattack US tariffs on Chinese imported goods from July 6, according to a local Chinese report. Watch the video