Tesla to Expand its Shanghai Gigafactory

Garrett_Li

Garrett_...

· 5月12日

Musk also confirmed that Tesla currently does not have a plan to build another factory in China. Tesla is focusing on increasing the production capacity of its plants in Berlin and Texas, Musk said.

Image Source: Visual China

Image Source: Visual China

BEIJING, May 11 (TMTPOST) — Multinational electric vehicle maker Tesla’s CEO Elon Musk told Financial Times in an interview that the company plans to expand its Gigafactory in Shanghai.

Musk also confirmed that Tesla currently does not have a plan to build another factory in China. Tesla is focusing on increasing the production capacity of its plants in Berlin and Texas, Musk said.

The Chinese market will account for 25% to 30% of Tesla’s global sales in the long run, according to Musk.

Tesla’s Gigafactory in Shanghai contributes a lot of production capacity to the company. According to statistics released by Tesla, in 2021 Tesla’s Gigafactory in Shanghai delivered 484,100 vehicles, accounting for 51.7% of the total delivered units across the globe. Tesla’s Shanghai Gigafactory exported over 160,000 vehicles to overseas markets, including over ten countries in Europe and Asia.

In Q1 2022, Tesla’s sales volume reached 182,200 units. The company’s global sales in Q1 surpassed 310,000 units. This means that Tesla’s Shanghai plant contributed nearly 60% of the company’s global sales. In Q1, Tesla achieved revenues of US$4.65 billion, registering year-on-year growth of around 53% from last year’s US$3.04 billion.

However, Tesla’s Shanghai Gigafactory has been heavily impacted by the Covid-19 resurgence in the city. The plant had to halt production and only recently resumed production on April 19 after 23 days of work suspension. According to statistics from CPCA, Tesla only delivered 1,512 cars in April, all of which were delivered to customers in China.

The plant’s production continues to be impacted by the pandemic as the supply chain is also affected by the pandemic. The Shanghai plant reportedly halted operation on Tuesday due to supply chain issue. It is reported that Tesla’s Gigafactory in Shanghai had to halt production due to supply chain issue this time. The production halt was triggered by the production suspension at wiring harness supplier Aptiv’s plant in Shanghai. The company discovered Covid-19 transmission at its Shanghai plant and has suspended supply temporarily.

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