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Tesla plans to build a new factory in Shanghai to double its capacity in China



SHANGHAI – Tesla plans to start work on a new factory in Shanghai as soon as next month as part of a plan to more than double its production capacity in China to meet the growing demand for their cars in the domestic and export markets, two people familiar with the matter told Reuters.

After the new factory is fully operational, Tesla will be able to produce 2 one million cars a year at the expanding facility in Shanghai, the company’s main export hub, according to people who asked not to be named during discussion of the plans to remain private.

The new factory will be located near the existing production facility in Lingang, Pudong New Area.

Tesla declined to comment.

The expansion, if carried out, would bring Tesla EV-specific production capacity in the world’s largest auto market on par with older brands in China.

While comparing, Toyota Motor Corp produce 1.6 million vehicles in China by 2021. Synthetic engine produced 1.4 million units with China’s major partner SAIC Motor Corp. Volkswagen capable plan to execute first million EVs in China by 2023.

The cost of Tesla’s expansion plan and completion date were not immediately known.

Tesla started production at its Shanghai factory – also known as Gigafactory 3 – less than a year after breaking ground. Factory make Tesla Model 3 sedan and Model Y intersection.

Two sources familiar with the expansion plans told Reuters that the current factory expansion plan is meant to put Tesla on track to produce about 1 million vehicles this year.

Tesla is expected to raise weekly output to about 22,000 vehicles at the plant in the coming months, one of the sources said.

That production rate will amount to about 1.1 million vehicles within a year, more than double the plant’s originally planned capacity.

Earlier, Reuters reported that Tesla could expand its capacity on the existing site.

The Shanghai municipal government did not immediately respond to a request for comment.

Shanghai has backed Tesla’s establishment of a 100%-owned factory in China – the first foreign car factory that is not required to have a joint venture with a Chinese partner.

In a regulatory filing with Shanghai earlier this week, Tesla said it plans to expand component production at its Shanghai factory, hire more workers and operate the plant longer for a day, to meet the growing export demand.

Tesla’s sales have surged in China, and its Shanghai factory has become an important export hub to markets such as Germany and China. Japan. Last year, cars made by Tesla in China accounted for about half of the 936,000 vehicles it delivered globally, according to Reuters. calculate using data of China Passenger Car Association.

Earlier this month, Tesla said its China revenue more than doubled in 2021 to $13.8 billion from the previous year. Elon Musk also said in October that Shanghai has surpassed the Fremont, California plant – the company’s first – in output.

Tesla has faced delays in opening its factory in Germany. Musk originally planned to open a factory in Berlin last July. Approval for the plant was complicated by a court case challenging the license granted to its water supplier.



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