Strong sales make Tesla plans to set up a new car factory in China. This decision was made based on a large enough market demand in the China to meet domestic or export needs.
Giga Shanghai, which has been in existence since 2019, has shown outstanding performance to meet market demand. Although production at Giga Shanghai was hampered by the regional lockdown due to Covid-19.
Seeing the growth of the electric vehicle market, finally the electric car company led by Elon Musk decided to add a new production facility.
See also: Tesla targets pre-lockdown production output in Giga Shanghai by May 16
According to Motorauthority, Tesla had a confirmation letter sent on May 1 to officials of Shanghai’s Lingang Special Area, where the factory is located.
In their statement, they said that they would build a new production facility with an annual capacity of 450,000 vehicles. Regarding what electric cars will be produced first at the facility, it is reported that they will produce the Tesla Model 3 and Tesla Model Y.
Lingang Special Area is a free trade zone located in the southern part of Shanghai. The Shanghai Giga is the first fully foreign owned production facility.
See also: India says no to Tesla importing EVs from Giga Shanghai
From Giga Shanghai, Tesla has produced Model 3 and Model Y. Regarding sales performance, throughout 2021, Tesla has succeeded in producing as many as 484,130 vehicles.
In addition to having a central facility in China, Tesla also has a production facility in Berlin which is the second factory established outside the United States. In the United States alone, Tesla has just inaugurated Giga Austin which is a new production facility and becomes their headquarters.
