Author / Aaron
On February 24, Auto Byte learned from foreign media that in order to cope with the growing demand of domestic and export markets, Tesla plans to more than double the production capacity of the Shanghai Gigafactory through the construction of a new factory, and construction is expected to begin next month.
At present, the Shanghai Gigafactory has become Tesla's main export center. Once the new plant is fully operational, Tesla's Shanghai Gigafactory will have a production capacity of up to 2 million vehicles per year. But at this stage, the cost and time to complete Tesla's gigafactory expansion plan is unclear.
It is reported that the new factory will be located near the existing production base in Lingang, Pudong New Area. Tesla declined to comment.
Two sources familiar with the expansion plan noted that Tesla plans to increase the plant's weekly production to about 22,000 units and increase its annual production capacity to about 1.1 million units in the coming months, more than double the initial expected capacity. But one of the sources said it also depended on the supply of spare parts.
If this plan is implemented, Tesla's dedicated production capacity for electric vehicles in China will be on par with domestic first-line car companies.
By comparison, Toyota produced 1.6 million vehicles in China in 2021. GM and its major Chinese partner SAIC motor produced 1.4 million units. Volkswagen plans to have the capacity to produce 1 million electric vehicles in China by 2023.
Tesla's Shanghai Gigafactory, also known as the "Third Gigafactory," is the first wholly-owned factory in China that does not require a joint venture with a Chinese car company. Production began less than a year after the start of construction, mainly responsible for the production of Tesla Model 3 and Model Y models.
Reuters previously reported that Tesla may expand the capacity of the existing venue, but the Shanghai municipal government did not respond to this.
Earlier this week, Tesla mentioned in a document submitted to Shanghai regulators that the planned processing would expand parts production at the Shanghai factory, hire more workers and extend the factory's operating hours by one day to meet growing export demand.
Tesla's soaring sales in China have led to its Shanghai factory becoming a key export hub for markets such as Germany and Japan. According to the China Passenger Car Association, Tesla made about half of the 936,000 cars it delivered globally last year.
Earlier this month, Tesla said its revenue in China more than doubled to $13.8 billion in 2021 from the previous year. In October, Elon Musk also mentioned that the Shanghai plant had already surpassed the first plant in Fremont, California.
It is worth noting that Tesla's plans to open a factory in Germany have been delayed. Musk's initial goal was to open a factory in Berlin last July, but the approval process was complicated by a court case over questions about the permits issued to his water suppliers.
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