Although there have been rumors that Tesla is looking for a location to build a second gigafactory in China, there is now information that Tesla may have found one and could start working as soon as next month.
According to sources familiar with the plan, the second factory will double Tesla's production capacity in China to 2 million cars per year, and according to its report, the new factory will be built near the existing Shanghai factory in Lingang, Pudong New Area, the report does not elaborate on whether the new factory is a stand-alone factory or an expansion of the Shanghai gigafactory (we prefer to upgrade the Shanghai factory), and the report does not disclose the cost or completion schedule of the project.
Whichever option, however, the production rate of 2 million vehicles per year will put Tesla ahead of several traditional automakers such as Toyota (1.6 million), General Motors (1.4 million) and Volkswagen (Volkswagen plans to produce 1 million electric vehicles in China by 2023).
If the report is true, the work will begin at the same time that Tesla is spending $188 million to expand the production line at its Shanghai factory, and Tesla also submitted documents to the Shanghai government this week saying they will increase production workshops, increase the number of workers, and extend the uptime of production equipment, all of which will help Tesla increase the number of production in China's Shanghai factory.