Tesla said on Thursday its Shanghai factory has rolled out its five millionth electric drive system, marking a new production milestone for the U.S. electric vehicle maker’s largest manufacturing hub.
The electric drive system, developed in-house by Tesla, integrates the motor, gearbox and inverter into a single three-in-one unit that the company describes as the “heart” of its electric vehicles. Tesla said the system offers higher energy conversion efficiency, a more compact structure and lighter weight, contributing to energy savings, strong performance and longer service life.
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The milestone comes just over a year after Tesla said its 10 millionth electric drive system globally was produced at the Shanghai site, making it the first self-manufactured component to reach that level. The factory, known as Giga Shanghai, began construction in January 2019 and started operations by the end of that year, becoming China’s first wholly foreign-owned automobile manufacturing project.
Giga Shanghai started delivering Model 3 vehicles to Chinese customers in January 2020, followed by Model Y deliveries in early 2021. The facility is Tesla’s largest globally, with an annual production capacity of around one million vehicles.
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Tesla has repeatedly used the Shanghai plant to mark major production milestones. In December 2025, the company said its four millionth China-made vehicle rolled off the line at the factory, a Model Y L six-seat sport utility vehicle. Later that month, Tesla also announced that its nine millionth electric vehicle produced globally was built at the same site, with the milestone vehicle again being a Model Y.
Despite the manufacturing milestones, vehicle deliveries from Giga Shanghai declined last year. The factory delivered 851,732 vehicles in 2025, down 7.08% from a year earlier. In December alone, Tesla China’s wholesale sales, including domestic deliveries and exports, totaled 97,171 vehicles, data from the China Passenger Car Association showed.