HomeTech NewsTesla to build a second factory in Shanghai to increase production

Tesla to build a second factory in Shanghai to increase production

US electric car maker Tesla is reportedly planning to build a new factory near the Shanghai Gigafactory. The new facility is expected to produce Model 3 and Model Y with an annual production capacity of 450,000 vehicles, which will increase Tesla’s total production capacity in Shanghai to 1 million vehicles per year.

The official WeChat account of China’s official media, the China Securities Journal, cited multiple sources for the above report today.

According to reports, a few months ago, a reporter from China Securities News learned during a site visit to Tesla’s Shanghai Gigafactory that a large plot of land about 200 meters from the existing Tesla factory was included in the planning for possible new factories in the future.

According to reports, Tesla wrote a letter of thanks to China’s Lingang New Zone (Shanghai) Pilot Free Trade Zone on May 1, expressing its appreciation to the local government for its efforts to help keep Tesla’s Shanghai Gigafactory up and running. It has been also added that they thank you for mobilizing local resources, sending skilled workers back to the factory for closed-loop production, and helping the factory with disinfection.

It’s worth noting that the letter of thanks also made it clear that Tesla plans to build a new factory near the existing Tesla Shanghai Gigafactory for Model 3 and Model Y production, which is expected to add 450,000 vehicles. He also stated that Tesla will become the largest auto export center in the world with its annual production capacity.

Statistics show that in 2021, Tesla’s Shanghai Gigafactory will deliver a total of 484,130 electric vehicles, up 235% year-on-year, with more than 160,000 of them delivered to overseas markets, meeting the needs of more than 10 countries, including Europe and Asia. Of Tesla’s global deliveries of 936,000 vehicles in 2021, 51.7% will be the Shanghai Gigafactory.

In response to the news that Tesla plans to establish a second factory in Shanghai, the person in charge of a large auto parts company in Shanghai said that there had been earlier relevant news in the industry today. This time, Tesla made it clear in its official communication with Shanghai, which could mean it’s not too far from the new factory.

However, Tesla China has not yet given a clear response to the news that “Tesla is establishing a second factory in Shanghai”.

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Mehmet is one of the administrator of Teknonel. As a software developer, he loves to share his knowledge in related topics. He is highly familiar with the editorial process from the inception of an article idea, through the iterative process, publishing, and performance analysis as well as product reviews.

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