Tesla has confirmed that it plans to build another factory in Shanghai, according to a letter sent to local authorities. The Reuters report shows that with the new production capacity, the company will be able to produce two million vehicles per year.
A new letter obtained by Reuters shows that Tesla is planning to build another factory in China, next to the existing Giga Shanghai. The manufacturer's letter, sent to the local authorities, included a description of plans for further expansion. This confirmed information received by Reuters in February 2022 about the planned construction.
Tesla planned to begin work on a new factory in Shanghai in March, as part of a plan to more than double its manufacturing capacity in China to meet the growing demand for its vehicles in the country and in export markets. It is likely that due to the worsening situation with COVID-19, the manufacturer's plans may have been delayed. Once the new factory is fully operational, Tesla will be able to produce up to two million vehicles per year in China, according to the plan. The new facility will be located close to the existing Giga Shanghai. The cost of the planned expansion and Tesla's completion schedule are not known.
In the new letter, Tesla also thanks the Shanghai government for cooperating and taking a direct role in restarting production. According to the information, the authorities helped move more than 6,000 workers to Giga Shanghai and also disinfected the facility to launch it into “closed loop” production.
“They fought for three consecutive days, working round the clock and non-stop to guarantee our company's workers could return to the factory,” Tesla said in the letter.
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