Tesla’s Shanghai Gigafactory Achieves 90% Localization of Supply Chain, To Produce Half a Million Vehicles This Year

Cailian reported on Wednesday that Tao Lin, Vice President of Tesla Global, said in an interview that Tesla’s Shanghai Gigafactory can achieve the goal of producing 500,000 vehicles this year. Moreover, the facility is highly efficient in production and has localized 90% of its supply chain.

Tesla has worked actively in promoting the growth of local parts companies. With the firm’s global layout, the enterprises in Tesla’s supply chain generally enjoy greater international competitiveness.

In September, Tesla’s Shanghai Gigafactory was expected to produce 300,000 vehicles in the first nine months of the year. Despite the global chip shortage, the factory realized a delivery peak at the end of the third quarter. In addition to meeting demand within China itself, the Shanghai Gigafactory also produces its Model 3 cars and Model Y SUVs for foreign markets such as Germany and Japan.

The Shanghai Gigafactory initially set its productivity target at about 156,000 vehicles per year, then 250,000 vehicles, then significantly increased it to 550,000 vehicles per year. The first batch of Model 3s was delivered in December 2019, only 12 months after Tesla started construction in December 2018.

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Recently, Tesla’s Shanghai Gigafactory received an investment of 1.2 billion yuan for the latest round of expansion to increase the production capacity of the factory. After the upgrade, Tesla China intends to increase the production capacity of the factory to between 1 million and 1.5 million vehicles per year.