Tesla China has started construction on Phase 2 of Gigafactory 3 Shanghai. The upcoming building could be for the upcoming China-made Model Y program.

Drone operator Jason Yang recently shared footage of the construction site in his most recent video. Yang refers to the site as the third phase in his video. However, some refer to the previous building as Phase 1.5 because it is technically an extension of Giga Shanghai Phase 1, which houses the MIC Model 3 Standard Range Plus assembly line.

Tesla has yet to announce its plans for Gigafactory 3's Phase 2 building, but it could potentially be used for China's Model Y program. Elon Musk launched Tesla China's Model Y program in January this year during the MIC Model 3's official delivery event.

The MIC Model Y program's launch meant that Tesla's Giga Shanghai has already started R&D work, research, and other preparations for the affordable all-electric SUV crossover's production. Still, neither Elon Musk nor Tesla China has announced when actual Model Y production will being in Gigafactory 3, but the groundwork seems to have started already.

Given the pace Tesla China sets for work, Phase 2 would theoretically be finished in time for Model Y assembly to begin--at least the initial release candidate versions of Tesla's SUV crossover--sooner rather than later.

Work on the second part of Tesla's Giga Shanghai seemed to started immediately after Phase 1.5, otherwise known as the Battery and Powertrain workshop, was finished. Based on a previous Tesmanian report, the shell of Tesla China's Battery and Powertrain facility appeared to be near completion in December. So, Giga Shanghai must have worked on fully finishing the exterior as well as the interior of Phase 1.5 for the last couple of months.

China Delivery Update: crazy delivery time returns back to @teslacn. Almost all flatbed trucks in Shanghai are rented for #Model3 home delivery. Talking about demand, it’s not slowing down either. New orders submitted today will be delivered in May, according to a sales rep. pic.twitter.com/TLKSFquC1o — Ray4️⃣Tesla⚡️🚘☀️🔋 (@ray4tesla) February 29, 2020

Since work on Phase 2 has started, however, Tesla China hasn't made any announcements about the seemingly finished Battery and Powertrain facility. Its silence is notable because news about the MIC Model 3's new CATL cobalt-free battery has been covered extensively for the last couple of weeks. Although, Tesla China may be waiting for Battery Day to make any announcements about Giga Shanghai's completed Phase 1.5.

Either way, Tesla's Gigafactory 3 in Shanghai has obviously been working hard since its return from an extended holiday break due to COVID-19. Now, Giga Shanghai is busy catching up with Model 3 deliveries all over China.

Featured Image Credit: Jason Yang/YouTube

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