Tesla has confirmed plans to build a second Shanghai factory with an annual output of 450,000 vehicles.
Tesla plans to expand Gigafactory Shanghai’s production capacity by developing a second factory on the property that may add 450,000 vehicles to the Chinese plant’s annual output.
While such intentions have been reported before, this is the first time Tesla has confirmed them. The EV producer revealed plans to expand its present production in a May 1 letter to local authorities from Shanghai’s Lingang Special Area, confirming a prior story from February.
When the first phase of construction is completed, the business plans to establish a new plant on adjoining land in the same location, with an annual capacity of 450,000 cars, including Model Y and Model 3 vehicles. Gigafactory Shanghai would become “the world’s largest car export hub” as a result.
Tesla had stated that the Shanghai factory will supply 484,100 vehicles in 2021, implying that the new factory will effectively quadruple the current facility’s yearly capacity. Last year, Giga Shanghai delivered 51.7 percent of Tesla’s 936,000 worldwide deliveries, beating the busy Fremont Factory.
In China, Giga Shanghai delivered 321,000 Model 3 and Model Y vehicles to customers last year, 117% more than in 2020, with the remaining 163,130 cars being exported to major markets such as Germany and Japan.
While Tesla provided no timeline for the expansion, it’s pretty clear that the automaker’s capacity in Shanghai will grow to almost 1 million vehicles once completed.
Tesla also thanked officials in the letter seen by Reuters for helping it establish “closed loop” manufacturing during the halt last month. After a 22-day shutdown, the factory reopened on April 19, the longest since the US manufacturer began production in Shanghai in late 2019.
According to calculations based on the company’s output plans, Tesla’s lost production for the period is projected to be more than 50,000 automobiles.
According to rumours, production in Shanghai has restarted at an 80 percent rate. During Tesla’s Q1 2022 earnings call, CEO Elon Musk stated that the Chinese facility will continue to produce the same number of cars in the second quarter as it did in the first.