Tesla Model Y from China “gigafactory”

An official ground-breaking ceremony has marked the start of Gigafactory 3 in Shanghai, expected to produce Tesla’s Model Y.

Tesla chief executive officer Elon Musk confirmed Model Y production at the factory during the ceremony, saying “affordable” versions of the Y and Model 3 will be made there.

Higher cost versions of these vehicles, along with the Model S and Model X, will still be built in the US and exported to China and other markets, Electrek

reports.

Musk is impressed with the speed of progress at the Shanghai factory and hopes to see initial Model 3 production there towards the end of 2019 with volume production achieved the following year.

China Passenger Car Association secretary general Cui Dongshu reckons Tesla will push other automakers in China to accelerate their technology.