As Tesla focuses on staying ahead of the electric vehicle (EV) transition in the world’s largest auto market, the automaker is apparently constructing a second factory in China to double production.
Tesla is planning to begin construction of a new production facility in Shanghai, with the project set to begin as soon as next month, according to two sources familiar with the matter who told Reuters.
When it becomes fully operational, Tesla expects to have a production capacity of as many as 2 million cars per year at the expanded factory, which is also expected to be Tesla’s main export hub, according to the sources who remain anonymous due to the privacy of the matter.
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The new facility is expected to be built near the current facility, located in Shanghai’s Lingang, Pudong New Area.
The expansion is also expected to give Tesla a production capacity close to those of more established worldwide brands in China, such as world auto sellers Toyota, General Motors (GM) and Volkswagen — each of which produces between 1 million and 1.6 million cars per year in the Chinese auto market.
Last year, a report noted Tesla’s plans to invest 1.2 billion yuan ($187.91 million) to expand the Gigafactory Shanghai.
Contributing Writer at TeslaNorth.com from California’s southeast Bay Area. Covers electric vehicles, space exploration, and all things tech. Loves a good cup of coffee (click here to buy us a coffee), live music and puppies. Buying a Tesla? Click here to get 1,000 free Supercharging miles.