Tesla plans to build a second factory in Shanghai that will increase its overall production capacity to 200 cars a year

2022-05-04 0 By

Tesla plans to build a second factory in Shanghai to more than double its production capacity in China, foreign media reported.Tesla is expected to begin construction as soon as next month on the new factory, which will meet growing demand for capacity in both China and overseas export markets, according to people familiar with the matter.The new factory will be located in the Lingang New Zone of the China (Shanghai) Pilot Free Trade Zone in Shanghai’s Pudong New Area, next to Tesla’s existing Gigafactory production base, the unnamed sources said.Capacity expansion plans, costs and timelines remain unknown.Once the new plant is fully operational, the US electric carmaker will have the capacity to produce 2m new cars a year in Shanghai.In that case, Tesla’s production capacity in China will surpass that of traditional giants like Toyota and GENERAL Motors.Toyota produced 1.6 million new cars in China in 2021, while SAIC-GM produced 1.4 million vehicles.Notably, the new plant is in addition to tesla’s planned expansion of its existing Gigafactory in Shanghai, which alone will help increase tesla’s production capacity to about 1 million vehicles this year.Tesla aims to boost weekly production to about 22,000 vehicles in the coming months and about 1.1 million in a year’s time, more than double tesla’s original planned capacity in Shanghai, one of the sources said.In a regulatory filing with the Shanghai government earlier this week, Tesla said it planned to take steps to meet growing demand for exports, including expanding parts production, hiring more workers and keeping factories open for a longer day.Tesla currently builds its Model 3 and Model Y lines at its Gigafactory in Shanghai, which is crucial for the brand to achieve record deliveries in 2021.”Made in Shanghai” accounts for about half of tesla’s 936,000 new cars delivered worldwide.Neither Tesla nor the Shanghai government has commented on plans for the new plant.