It’s official! All Australian Tesla Model 3s to come from China

It’s official – the Tesla Model 3 is coming from China.

Every updated Tesla Model 3 currently being pre-ordered for sale in Australia will be sourced from China.

While Tesla has shut down its PR department, making it difficult to get answers to questions, the company’s online chat tool provided confirmation to EVcentral that Model 3 production has shifted to China.

“All of our vehicles are produced in Giga-Shanghai,” said the online assistant in answering a question about where the Model 3 is now manufactured.

The assistant confirmed that all updated Model 3s for Australia were to be sourced from China, from the entry-level rear-drive Standard Range Plus through to the dual-motor Long Range and the flagship Performance.

Giga-Shanghai opened late in 2019 and is designed to manufacture as many as 250,000 Model 3s and Model Ys each year.

The change in sourcing of the updated Model 3 was supposed to kick in with all new MY21 models.

However, at least two updated American-sourced Model 3s were sent to Australia and handed out for media evaluations late last year and early in 2021, something that will no doubt be controversial given the differences between the Chinese-made Model 3s (keep reading…) and those sourced from the original Californian factory at Fremont.

It’s not known if any updated Model 3s have yet arrived in Australia from the Chinese Shanghai plant, but some customer cars are expected to be delivered in the next two or three weeks.

Tesla Model 3 battery differences

While there are some minor trim and design differences, the biggest change between the source of the Model 3s is the battery packs.

Both Chinese and American Model 3s use lithium-ion batteries but there are differences in the battery chemistry.

The US Model 3 has lithium nickel cobalt aluminium oxide batteries, also referred to as NCA.

The Chinese Model 3 gets a lithium iron phosphate battery – similar to those used in remote control cars, known as LFP or LiFePO₄ – which has a lower energy density but is understood to be cheaper to manufacture.

The lithium iron phosphate batteries are expected to have a longer life and are also not as sensitive to being fully charged.

“You can basically be lazier with your charging,” says Rob Dean, the chair of the Tesla Owners Club Western Australia.

Tesla claims better EV ranges for the updated Model 3 – 508km, 657km and 628 km for the SR+, Long Range and Performance respectively – in part due to software changes but also due to the addition of a heat pump that is far more efficient in heating the cabin (something that promises bigger benefits in cool climates).

It has been rumoured since September last year that the Model 3 and its SUV sibling, the Model Y (including a seven-seat Model Y), would soon come out of China, but no one from Tesla has yet confirmed it for Australia. Online chat sites have suggested some who placed early orders have been contacted by Tesla sales staff informing them of the sourcing of the cars.

Others have pointed to changes in the Australian online configurator that showed the interior door trims from the Giga Shanghai factory – and a stretch in the delivery time to “9-12 weeks” as confirmation the cars would come from China.

But now it’s official.

For now Tesla has only certified the updated Standard Range Plus and Long Range for sale in Australia with the Department of Transport and Regional Services (DOTARS). Each is being quoted as a 9-12-week wait on Tesla’s Australian website.

However, if you order a Model 3 Performance, Tesla is quoting it will arrive in June, suggesting it will soon certify that faster model for sale locally.

What does it mean?

TOCWA chair Rob Dean says the shift in manufacturing from the US to China is “very divisive” among Tesla owners and enthusiasts.

“Most owners think the quality will be better,” says Dean, referring to the often patchy fit and finish and paint quality that Teslas have long suffered from. Tesla chief Elon Musk recently acknowledged Tesla Model 3 quality had been below expectations.

They think the quality of the Chinese-made Teslas will be better.

“There’s also this political thing of people not wanting an electric car from the CCP [Chinese Communist Party], which is strange because our iPhones and other electronics come out of China.”

Is the Chinese Model 3 cheaper?

Apparently not, at least according to Tesla’s online configurator.

Some were expecting the different battery to make the cars cheaper and the recent strengthening of the Australian dollar could also be used as an argument to lower prices.

Tesla reduced some prices last year but has not adjusted them again with the shift from California to China manufacturing for the Model 3.

Prices for the Model 3 Standard Range Plus start at about $72,000 drive-away while the Long Range is $89,600 and the Performance about $106,000 (prices vary slightly depending on your location).

The “Full Self-Driving” option adds about $14,000 but is currently not operational (Tesla cannot say when it will be available).

How to tell where your Model 3 is made

The vehicle identification number, or VIN, is the easiest way to determine where a Tesla is built.

If the VIN begins with “5YJ” then the car is from the Fremont factory, something backed up by the 11^th character in the alphanumeric VIN, which should be “F”.

If the first three characters of the VIN are “LRW” then the Model 3 is from the Shanghai factory in China. The 11^th position in the VIN should also be “C”, denoting China.