Tesla Giga Shanghai Has a 95% Localized Supply Chain, Driving Chinese Industry Growth

Tesla Giga Shanghai Has a 95% Localized Supply Chain, Driving Chinese Industry Growth

Photo: Tesla

Tesla Giga Shanghai has more than 95% localized supply chain, said the company's vice president for China. This ensures that production takes place as quickly as possible, and at a lower cost.

On Monday, Grace Tao, vice president of Tesla China, shared important information on Weibo. According to her statement, Giga Shanghai has an over 95% localized supply chain, which has risen from 90% at the end of 2021. This means that the company has further improved production efficiency, which has a direct impact on the optimization and acceleration of production. Tesla China has always actively promoted the growth of local parts companies, which has had a huge positive impact on the growth of the industry as a whole.

Giga Shanghai has always strived for the highest localization, which has a number of advantages. Domestic production of automotive components is cheaper, and shipping takes less time and is less expensive than if shipped from abroad. This is one of the biggest factors why Tesla's Chinese factory is so efficient.

In addition, Tao reported that 99.9% of Giga Shanghai's employees are Chinese. This is another positive factor, which means that it is the people of China who receive the main benefits from the work of the factory, having a job, and improving their financial situation. In addition, this is also a positive factor for the state, since the money people earn is spent within the country and does not flow abroad.

Giga Shanghai's work is admirable. Tesla CEO Elon Musk has repeatedly said that the local executive team works almost like an autonomous organism, independently setting itself difficult tasks and achieving them. It is they who are primarily responsible for the success of the factory and Tesla China.

© 2022, Eva Fox | Tesmanian. All rights reserved.



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About the Author

Eva Fox

Eva Fox

Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.

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