The cars being built in that time wouldn't be like the cars from the company's Fremont factory, though. Instead, they'd be built from what are called complete knockdown kits or partial knockdown kits. This means that the cars are partially assembled elsewhere and Shanghai would be responsible for final assembly.
This is relatively standard practice throughout the industry. Many manufacturers, such as
and others, have done it to get models such as
or SUVs into the US without having to pay the "Chicken Tax" on imported light
"Our China team's view of Tesla's ability to ramp domestic production and to take commercial share in the domestic Chinese market is more bullish than the forecast implied within our earnings model," said Morgan Stanley's analyst, in a statement. "We have allowed for a greater level of execution risk in our assumptions, given the complexity of bringing an all-new plant with all new workers and many new suppliers on line within the Chinese market."
's estimates for production in China are predictably more grand, with his estimates placing the figure somewhere between 50,000 and 100,000
s per year by the end of 2019.
Tesla offered no official statement regarding Chinese production estimates, or Morgan Stanley's report.