Photo: Tesla

By the end of the year, Tesla will reach a production localization rate of around 90% at Giga Shanghai. The factory should reach production of 450,000 vehicles per year, 66,100 of which should be exported.

Yuan Guohua, deputy secretary of the Party working committee of the Lin-gang special area administration of the FTZ, said the American car manufacturer, Tesla, is expected to achieve a production localization rate of around 90% at Giga Shanghai by the end of 2021. In addition, the factory is expected to produce 450,000 vehicles per year, about one-seventh of which would be for export.

Buying domestically can significantly reduce the cost of materials and components for car production. This, in turn, allows the prices of domestically sold cars to be reduced and sold at affordable prices outside of China.

The growing production at Tesla's factory also will help modernize and develop the entire new energy vehicle (NEV) production chain in the Lingang area, said Guohua. Tesla is the largest manufacturer of electric vehicles here, which attracts suppliers to locate their business as close to it as possible. Thus, the manufacturer creates many jobs in the supply chain and stimulates the development of the local economy.

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