On the morning of October 24, Tesla released the Q3 financial report for 2019. It shows that its profits reached $143 million, with the company’s per car revenue rate increasing by 22.8%. “Super proud of Tesla team for great execution & support of Tesla customers greatly appreciated!!” Elon Musk couldn’t hide his excitement about the results.

However for the Chinese market, the Shanghai factory is the primary focus. According to the latest news in the financial report, Tesla’s Shanghai plant has been under construction for 10 months and is now ready for production. Its total construction cost is about 65% lower than the Model 3 production line in the United States.

SEE ALSO: Tesla’s Shanghai Gigafactory Up and Running for Production

At present, LG Chemical, which supplies batteries for the domestically produced Model 3, has begun the mass production of 2170 batteries. Windshield and roof glass supplier, Saint-Gobain, built a factory in Shanghai has started trial production on the 14. On the 19, the company started recruiting delivery experience specialists in Beijing, Shanghai and Shenzhen.

Tesla Staff is assembling a car (Source: Tesla)

In addition, the Ministry of Industry and Information Technology announced on October 17 the 325 batch of companies that applied for the “Road Motor Vehicle Manufacturers and Product Announcement”. Included in the announcement was Tesla, as the company officially obtained the license to produce electric vehicles in China.

According to current plans, the Tesla Shanghai plant will start actual production this month. By the end of this year, the weekly production is expected to reach 1,000 vehicles. Its annual production capacity is expected to reach 500,000 vehicles in the future.

The “China speed” of the Tesla Shanghai factory’s construction was inseparable from the efforts of the Shanghai government. Shanghai provided a large amount of cheap land, bank loans totaling up to 10 billion yuan. For the construction of the Tesla factory, the Shanghai government refused the request of EV startup NIO to build a local factory.