Tesla says Shanghai to manufacture 1 million electric cars per year

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Tesla says Shanghai to manufacture 1 million electric cars per year

Robert Besser
07 May 2022, 12:42 GMT+10

  • After the construction of its new factory, Tesla said this week that it would turn Shanghai into “the world’s largest vehicle export hub”
  • While the rest of the auto industry has slowed during the COVID-19 pandemic, the hugely successful Gigafactory Shanghai has enabled Tesla to grow at a rapid rate
  • Last year, Tesla CEO Elon Musk said Gigafactory Shanghai, which is now its main export hub, has surpassed the company’s Fremont Factory, in terms of production capacity

SHANGHAI, China: After the construction of its new factory, capable of producing 450,000 electric vehicles per year next to its existing plant, Tesla said this week that it would turn Shanghai into “the world’s largest vehicle export hub.”

While the rest of the auto industry has slowed during the COVID-19 pandemic, the hugely successful Gigafactory Shanghai has enabled Tesla to grow at a rapid rate.

Last year, Tesla CEO Elon Musk said Gigafactory Shanghai, which is now its main export hub, has surpassed the company’s Fremont Factory, in terms of production capacity.

Until it was shut down for most of last month due to serious COVID-19 restrictions in Shanghai, the factory looked unstoppable.

Tesla finally restarted production a few weeks ago, after receiving significant help from local authorities.

In a letter sent to authorities by Tesla on 1st May, seen by Reuters, the company thanked local authorities in Shanghai’s Lingang Special Area for helping to transport more than 6,000 workers and disinfecting the factory.

In the letter, Tesla also mentioned the new factory being built next to Gigafactory Shanghai, where they plan to build Model 3 and Model Y electric vehicles.

In February, Tesla indicated that it planned to use the land next to Giga Shanghai to build either a new factory or expand its existing plant.

While there is no clear timeline for the expansion, it is expected to bring Tesla’s production capacity in Shanghai to 1 million cars per year after completion.

Tesla is also planning a similar capacity increase in Berlin and Texas, after completion of Giga Shanghai, though the company plans to start with a capacity of 500,000 vehicles per year at each factory.

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