Tesla Plans to Invest Nearly $200M to Expand Production Capacity at Giga Shanghai

by Eva Fox November 26, 2021

Tesla Plans to Invest Nearly $200M to Expand Production Capacity at Giga Shanghai

Photo: Wu Wa/YouTube

Tesla plans to invest up to 1.2 billion yuan (about $188 million) to expand production capacity at Giga Shanghai. This will significantly increase the factory's production capacity and employ 4,000 more people, according to the state-backed Beijing Daily.

The investment amount was redacted in the document Tesla published on November 23 on the platform when Reuters accessed the document on Friday. The documents showed that the planned expansion will allow Tesla to increase its workforce by 4,000 people. Thus, the number of people who will work at the factory will increase to 19,000 employees. According to the report, the production line optimization project will focus on the expansion of the press shop, body shop, paint shop, final assembly shop and logistics operation center. The document also revealed that no changes are planned for the models currently being produced at Giga Shanghai. The application also does not indicate how much the factory's production capacity will be increased.

At this point, Giga Shanghai has already achieved an incredibly large production capacity. According to the data published by Tesla in the Q3 report, the production capacity of the factory is 450,000 units, but, in fact, this number can be significantly higher. In October, in just 24 working days, 54,391 vehicles were sold. While this figure does not represent a production figure, it is logical to expect that around 54,000 units were produced. This also means that production at the Chinese factory could already reach a whopping 806,000 units. With the new expansion, this figure will easily surpass one million units produced per year.

© 2021, Eva Fox | Tesmanian. All rights reserved.

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