Tesla wants to begin construction on a new facility in Shanghai as early as next month as part of a plan to more than double production capacity in China to meet surging demand for its cars in China and export markets, according to two individuals familiar with the subject.
According to the people, Tesla would be able to produce up to 2 million cars per year once the new plant is completely operational at its expanded Shanghai site, the company’s primary export base, once the new plant is fully operational.
The new plant will be in close proximity to the company’s current production site in Lingang, Pudong New Area.
If the expansion is approved, Tesla’s EV-specific production capacity in the world’s largest auto market will be on par with that of more established companies in China.
Toyota Motor Corp produced 1.6 million automobiles in China in 2021, by comparison. With its key Chinese partner SAIC Motor Corp., General Motors produced 1.4 million vehicles By 2023, Volkswagen expects to be able to produce 1 million electric vehicles in China.
The cost of the planned extension as well as Tesla’s expected completion date were not immediately available.
Tesla’s Shanghai plant, also known as the Gigafactory 3, began production less than a year after breaking ground. The Tesla Model 3 sedan and Model Y crossover are produced at the factory.
Two sources familiar with the expansion plans told Reuters that expansion plans for the existing facility seek to put Tesla on track to produce about 1 million vehicles this year, though one said this was contingent on components availability.
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