Tesla’s Shanghai Gigafactory recently hit a significant production milestone, celebrating the manufacture of its two millionth electric vehicle just over a year after reaching its first million. The rapid production pace is attributed to strategic cost optimization and the integration of sophisticated automated machinery.
During an exclusive tour for CGTN, Tesla staff revealed that the factory’s efficiency is largely due to the advanced robotics that dominate the production line. “You can barely see any staff on the production line,” said Zheng Chunying from Shanghai. “Almost all of the steps in the production process are completed using advanced robotics, all connected to one cloud system.”
The factory’s location in Shanghai’s pilot free-trade zone has also been a key to its impressive production ramp-up. The zone offers the advantage of proximity to everything the factory needs, including a supply chain that is over 95 percent localized, meaning most parts are sourced from nearby suppliers.
Tesla’s Shanghai facility is not just serving the Chinese market but has become a global export hub, contributing significantly to the company’s sales across the Asia-Pacific, Europe, and North America. In 2022, the Shanghai factory accounted for more than half of Tesla’s global sales.
The impact of Tesla’s investment in Shanghai extends beyond production numbers. Mr. Sun Xiaohe, chief of the Finance and Trade Division of the Administrative Committee of the Lingang Special Area, commented on the broader benefits. “Tesla’s presence has boosted the development of advanced manufacturing and new energy vehicle technology in China,” he said.
Bill Russo, Chairman of the Auto Committee at AmCham Shanghai, noted Tesla’s influence on China’s electric vehicle market. “Chinese consumer interest in electric vehicles really accelerated once Tesla established its presence here,” Russo stated.
Looking ahead, Tesla is doubling down on its commitment to China with plans for a new mega-factory in Shanghai dedicated to its energy-storage product, the Megapack.
As it stands, the newest Model 3 ‘Highland’ is being manufactured at Giga Shanghai, along with a new minor Model Y refresh.