Rumour: Tesla Model Y could be made in China

A teaser image of the Tesla Model Y was released at the company's annual shareholders meeting earlier this month. Now, media reports have indicated a possibility of the electric carmaker setting up a new car factory in China for the all-electric compact crossover.

On May 10, Tesla (Shanghai) Co. Ltd. was registered in China. The move follows the Chinese authorities' decision to remove the 50% cap of foreign ownership rule for electric vehicle (EV) companies. Tesla was already trying to build a factory in Shanghai without a local partner, but their requests were earlier denied.

Tesla's battery partner, Panasonic, revealed on May 10 that they would be building batteries in China and USA alongside the carmaker. According to various analysts, the company could also fast track the production of the Model Y by producing it in China. The country is not just the world's largest auto market, but also the consumer of 50% of all EVs made globally. The higher demand, combined with the reduction in import duties, could see the Model Y go on sale in just 24 months. Tesla CEO, Elon Musk has also told the media that the Fremont facility is running at full capacity.

The Model Y will be based on the platform currently underpinning the Model 3. It is expected to use a new flex circuit technology instead of the regular wiring harness to reduce the complexity of wiring in an electric car. The technology uses thin conductors which are sandwiched between layers of plastic mouldings. It will replace the bulky wiring harnesses in the current cars which are difficult to install. The Model 3 is said to have over 1.5 km of wiring, but the Model Y’s new flex circuits could reduce that to just 100 m.

Source - Autocar