Tesla’s Shanghai plant is currently capable of producing a total of 450,000 Model 3 and Model Y vehicles per year.
Huge EVs Tesla According to Reuters, according to a document it has filed with the city government, there are plans to expand production of parts at its Shanghai factory in China to meet growing export demand. According to the document, the automaker is looking to add production facilities, increase the number of workers and extend the life of equipment.
Currently, the EV maker’s Shanghai plant is capable of producing a total of 450,000 Model 3 and Model Y vehicles per year. Last year, the company sold more than 470,000 Chinese-made cars, of which more than 160,000 were sold overseas, Xinhua reported.
In November, a state-backed newspaper reported that Tesla plans to invest up to 1.2 billion yuan ($190 million) to expand production capacity at its Shanghai factory, allowing the company to employ an additional 4,000 people at this location.
Going further, the company wants to open a design center in the Chinese capital Beijing to help them create their own distinctive Chinese-style cars. Back in 2020, the automaker said that it wanted to create distinct ‘Chinese-style’ cars. A latest Reuters report suggests that the automaker may have a design center in Beijing itself, rather than in Shanghai as previously rumored.
While Tesla does not reveal much about ‘Chinese-style’ cars that it plans to do, the automaker is expected to roll out smaller and more affordable electric vehicles that are mainly used by owners for city commuting. The company’s ultimate goal is to offer more affordable EVs, even more affordable than the Model 3.
Tesla’s increased investment in China also stems from the fact that it is the world’s largest automaker as well as the largest electric vehicle market. The auto market in China has reached a plateau in the past two years, with electric vehicles accounting for 15% of new car sales last year, according to a Bloomberg report. (Full read Report here)
Date of first publication: February 23, 2022, 05:57 PM IST