There has been speculation for some time, but now it seems to be getting more serious. Tesla finalizes plans for a second gigafactory in Shanghai. With the second Gigafactory Shanghai, the aim is to more than double the production capacity in China in order to respond to the growing demand for their own e-cars in China and on the export markets. Once the new Gigafactory is fully operational, Tesla will have the capacity to produce up to 2 million cars per year in Shanghai. This is a clear response to the high global demand for Tesla electric cars. The current production is so busy and the demand is still high. There is no sign of a drop in demand. Regardless of the high global demand, China itself is also a strong car market that will ensure healthy demand in the long term. For this reason, they probably want to build another plant right there. The new plant will be located near the existing manufacturing facility in Lingang, Pudong New Area, people familiar with the plans told Reuters. Tesla declined to comment. With the expansion, Tesla would build an electric car production capacity that rivals that of established brands in China. However, a concrete timetable has not yet been set. But as we all know, Tesla is very fast with the construction of its Gigafactory and is showing impressive times. In a regulatory filing with the city of Shanghai, Tesla said it plans to expand parts production at its Shanghai factory, hire additional workers and run the factory longer hours to meet growing export demand. As of today, Shanghai is the second largest Tesla factory with an annual production capacity of around 450,000 vehicles, following the Tesla Factory in Fremont with 600,000 vehicles.
Source: Reuters
