Tesla it is not only focusing on starting the new plants in Texas and Germany but it is also working on expand production capacity than the one already existing in Shanghai, in China. According to reports from Reuters, the American carmaker has presented the city authorities with new documentation for a project to expand the production of cars. An operation that will also involve the hiring of new employees.
Through this project, Elon Musk’s company intends to arrive at meet the export demand for its electric cars. This new plan to expand the factory’s production comes after another $ 200 million investment announced in November 2021 for the same reason. Thanks to the expansion of its activities, the Shanghai Gigafactory could aim for the milestone of million vehicles produced per year.
Originally, this plant was born only for local production. However, over time, Tesla’s strategy has changed. Today, the Shanghai Gigafactory is Tesla’s primary vehicle export hub, with the facility producing the Model 3s and Model Ys for overseas markets such as Europe and Australia.
CATLTesla’s leading battery supplier in China is building a cell factory right next to the Gigafactory in Shanghai. Factory that should help accelerate the production of the American manufacturer’s electric cars. The Chinese production site, therefore, is increasingly important to Tesla’s growth strategy as it has become essential to meet the demand for electric cars in some markets.
With the delays in commissioning of Germany’s Gigafactory, the Chinese site will supply the Model Ys to European customers. And speaking of the factory near Berlin, apparently there are new problems related to a new lawsuit filed by environmentalists on the water management of the factory. The fear is that the plant will compromise the availability of water in the region. A decision will be made on March 4th. The risk is that the times for the green light to production could be further lengthened.