Tesla's New Shanghai Factory Will Produce 1 Million Cars Annually

Tesla's new Shanghai factory will be able to manufacture one million vehicles per year. So there will be more Teslas in China now.

Tesla intends to expand its operations in Shanghai by constructing a new facility. Tesla's new Shanghai factory will produce 1 million cars annually. According to reports, the new facility will be located in the Lingang free-trade zone, next to the current Gigafactory 3, which will be Tesla's first plant outside of the United States and the first vehicle factory in China controlled entirely by a foreign entity. In the world's largest car market, a joint venture with a local business is almost always required in order to be competitive.

Tesla New Shanghai Factory Will Produce 1 Million Car Per Year

As reported by Reuters, Tesla is aiming for a total annual production capacity of up to two million units in Shanghai with this expansion. Although the South China Morning Post claims that 2 million will be reached in the long run, it also claims that immediate capacity will be raised to at least one million automobiles each year. Tesla China did not respond to a request for comment. This year's Gigafactory 3 is expected to have a capacity of 450,000 units per year. Construction on the facility took a little over a year, and local deliveries will begin in early 2020.

Tesla Gigfactory 3 in China

Last year, China recorded sales of 2.99 million new-energy vehicles (NEVs include pure electric cars, plug-in hybrids, and fuel-cell vehicles), representing an increase of 169 per cent year on year. According to the China Passenger Car Association, sales of NEVs might increase by another 84 per cent this year, reaching a total of 5.5 million units.

Elon Musk Will Invest 1.2 billion yuan in China

Elon Musk's electric vehicle firm, according to a story in the Chinese newspaper Beijing Daily in November 2021, will invest up to 1.2 billion yuan (RM798 million) to expand capacity at its Shanghai facility and hire an additional 4,000 personnel to help it ramp up production.

Tesla It was announced earlier this month that China would supply 484,130 automobiles in 2021, which is a tad more than 50% of the company's total worldwide sales of 936,000 vehicles. Tesla sold 321,000 Model 3 and Model Y automobiles in mainland China last year, more than quadrupling the number of vehicles delivered in the same period in 2020. The remaining 160,000 Teslas built in Shanghai were shipped to countries such as Germany and Japan.