Tesla has confirmed plans to build a new production facility near its current factory in Shanghai’s Lingang New Area, in order to expand production capacity, Reuters reported on Tuesday.
According to the report, in a letter addressed to local authorities, Tesla thanked Lingang officials for their support and described how a company run by the Lingang Group had arranged buses to transport 6,000 Tesla workers and its suppliers’ employees to the factory. They also carried out disinfection work needed for the company to enter “closed loop” production.
The company will build a new plant on nearby land in the same area, which is poised to add an annual capacity of 450,000 cars, including Model 3s and Model Ys, becoming “the world’s largest vehicle export hub,” the letter said.
In 2021, Tesla’s Shanghai Gigafactory delivered a total of 484,130 vehicles, an increase of 235% year-on-year, of which more than 160,000 vehicles were delivered in overseas markets, meeting consumer needs in more than ten countries across Europe and Asia. In Tesla’s global delivery of 936,000 vehicles in 2021, the Shanghai Gigafactory accounted for 51.7%.
A few months ago, a reporter from China Securities Journal visited the Shanghai Gigafactory and found that a large area of land located about 200 meters near the current factory has been included in possible plans for the new factory.
In response to the news that Tesla plans to set up a second factory in Shanghai, an individual in charge of a large auto parts company in Shanghai told China Securities Journal on Wednesday that relevant news had been circulated in the industry before. Tesla has now made the plans clear in the letter with Shanghai officials, which may mean it is not far from building the new factory.
Since March, the pandemic outbreak in Shanghai has had a significant impact on the production and operation of many enterprises in the city. Tesla, as a leading car company with operations in Shanghai, has also received close attention from all parties. In April, with the assistance of various parties, Tesla Shanghai Gigafactory officially resumed work, and its production capacity was improving steadily.
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Moreover, many auto parts suppliers for Tesla in Shanghai have started to resume work. Other Tesla suppliers in Zhejiang Province are also actively improving logistics to support Tesla’s vehicle manufacturing. Many suppliers in Jiangsu Province are still in a lockdown state. At present, China’s Ministry of Industry and Information Technology, relevant departments of Jiangsu Province are trying to provide support for them.