New Tesla Plant in China Will Bring Production to 2 Million Cars Annually, Says Report



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.

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.

Tesla is also expected to expand parts production at its current Gigafactory Shanghai due to the high export demands for its vehicles.

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