What happens when China, one of the world’s most fiercely competitive manufacturing countries,
goes up against Tesla, an American super-company devoted to revolutionising the way we think
about personal transportation?
While the Chinese government is renowned for imposing strict import regulations on other
countries and companies, its deal with Tesla hits just that little bit more different.
The company’s third Gigafactory is the result, but what lies within?
Join us on this adventure 90 minutes’ drive outside of Shanghai’s city centre to a once
barren plot of wasteland.
Giga 3 is big news, not only for Tesla, but in Chinese, and global, history.
Upon completion, it became the first fully foreign-owned factory in China, marking the
country’s change in attitude towards imports, further testified by the government’s involvement
in re-opening the facility’s doors following a temporary ban on all business at the start
of the coronavirus pandemic, including the distribution of PPE and the organisation of
transport to and from the site, as well as accommodation for workers.
Before we open the doors on what’s inside, let’s first get to grips on how Musk and
his team transformed this plot of land.
The first step was to secure the 86-acre plot of land in a 50-year agreement at the cost
of 973 million yuan, approximately $150 USD, in July 2018.
By the end of Summer 2019, all building work had been completed in a timeframe half that
of the Nevada factory, which took around 2 years from start to finish.
After a few more months of moving machinery in, the first ‘Made in China’ Model 3
rolled off the production line in December 2019 in its non-standard blue colour.
Tasked with eventually producing 300,000 Model 3s and 250,000 Model Ys from its Shanghai
factory, Tesla will export only one fifth, with the rest destined for customers in the
world’s largest car market.
Of the 21 million cars sold in China in 2019, between 1 and 1.5 million were EVs.
The first look we had of the factory was in a YouTube video posted by Tesla China themselves,
consisting of less than 50 seconds of shots of the assembly line, including robotic arms
many times the size of the human body, as well as harmonious work between robots and
humans.
Recent tours of the Shanghai-based manufacturing plant compare with what we know of the company’s
first-born, the Fremont factory based in California.
Videos of Giga 3 show tens upon tens of truck ports which allow for multiple deliveries
and collections to take place simultaneously.
This type of timed manufacturing based on a Toyota model known as ‘lean manufacturing’
means that the right parts arrive at the right time, making the process both cheaper and
more efficient by minimising waste and maximising productivity.
Inside the four walls, machines do the hard work while humans perform the tasks that cannot
be replicated by machinery.
Both work in harmony, often on the same production line, to ensure that quality is delivered
at every step.
Robot-only areas are strictly monitored by the staff, who occupy miniature booths inside
the building with windows and viewing platforms to overlook their area of responsibility,
while cameras cover areas that cannot be seen by the naked eye.
An array of sensors and sophisticated machinery is backed up by intense programming and machine
learning - any mistake will be rectified, making the artificial intelligence stronger
day by day.
While Musk emphasises the importance of technology for the company for cost-saving purposes and
precision that cannot be matched by the human eye, the factory continues to employ around
2,000 workers who stagger their shift patterns throughout the day.
Workers travel on vast, open corridors and networks of internal paths, which are strategically
and carefully positioned so as not to disrupt the assembly line’s flow.
Timelapse footage shows the cars moving down the line while humans and machines interject
at varying stages to complete the work.
Upon completion, it’s time for testing.
This is when the car’s infotainment system is booted into factory mode, allowing workers
to test all of the cars’ functions such as headlights, media control and drive systems.
Moving parts like the wheels and charging ports are also inspected at this stage.
Just like inside, a network of roads forms the area just outside the factory, used not
only by truck drivers, but also to transport the assembled Teslas to their final place
of resting on the site.
The parking lot.
Drone footage shows hundreds of spaces, filled over numerous days, full of Made in China
Model 3s awaiting transportation to their customers.
A space so vast, at over 860,000 square metres, is vital for the company to be able to ship
such numbers of finished components and goods.
Videos of the site show it to be an oasis in the middle of barren wasteland.
While this may not be overly pleasing to the eye, it means one thing for sure.
If needed, there is room for the company to expand operations and to outgrow the assembly
process outside of the current four walls.
CEO Elon Musk believes that one day Giga 3 alone could produce more than 1 million cars
each year.
To put that in perspective, America’s best-selling car, the Ford F-Series, is estimated ot have
been sold around 40 million times in a life spanning 73 years.
The total cost of the Shanghai factory is estimated to be between $2-5 billion, however
the figure is hard to place firmly because the site is under constant expansion.
Despite the virus’ impact on all businesses worldwide, early 2021 saw rumours surface
about Tesla’s plans to acquire a 114-acre plot of land adjacent to the existing site.
While Musk’s company wasn’t directly named, we knew that a ‘new energy vehicle manufacturer’
had plans to use the land.
We also knew that Musk had plans to outgrow the site.
The rapid growth of Giga 3 can’t give credit entirely to Tesla’s huge global success,
though.
Elon Musk has been working closely with Chinese officials in a mission that has truly paid
off, with the company gaining approvals and permissions, and even loans and support such
as those offered during the pandemic.
These have helped the company cut the cost for the production of the Made in China Model
3, which as well as going on somewhat to benefit the customer, also allows the company to reinvest
and develop quicker.
This, along with the company’s commitment to use locally sources products for all of
its factories, will help Tesla turn a higher profit and secure its place in the future
of personal transportation, and the wider automotive industry.
The Chinese operations have since been dubbed as a “template for future growth” by CEO
Elon Musk, who will duplicate everything that works well in the factory to future factories
in other continents.
In fact, the success of Giga 3 can be measured and quantified in its Made in China Model
3, which has been exported to many European countries as well as the Chinese mainland.
Owners and reviewers have testified to improved build quality, which could be linked to the
country’s expansive experience in manufacturing which has been shoehorned into Giga 3.
Furthermore, the plant has enhanced the sound insulation and sealing in the Model 3 to help
create a more refined, relaxed drive.
With an improvement in quality and a strong foothold in the door, Tesla’s future seems
reliant on China for both exploring manufacturing and exploiting new customers.
This is why, according to rumours, a research and development centre is set to be established
in the country to focus on Chinese customers, who are notably different to those in Europe
and the US.
China, for example, has previously been a fan of long-wheelbase saloons, which begs
the question whether the automaker will introduce such a Model there?
MIC Model 3s destined for Chinese ownership get one tiny hardware upgrade - Chinese characters
placed on the left of the trunk which are there to represent the sound translation of
‘Tesla.’
The English ‘Model 3’ badge remains unchanged on the right hand side.
In summary, Giga 3’s hybrid workforce of human and machine has resulted in improved
quality and faster production.
The company’s blueprint approach means expansion needn’t be complicated, and can even be
duplicated for future gigafactories around the world.
Cutting costs and improving customer satisfaction can only be a good thing, but we’re keen
to find out whether it has all worked out this way.
Have you received your Made in China Model 3, or maybe you’re able to share information
on your US-built Model?
Whatever your scenario, let us know what you think in the comments section below.