Tesla will build world's biggest car export hub in Shanghai after opening new factory in China

According to a Reuters report, Tesla plans to open a new factory in Shanghai, nearly doubling local production capacity and becoming "the world's largest auto export hub."


According to the report, Reuters saw a thank-you letter Tesla wrote to the Shanghai government on May 1 outlining the local government's efforts to help Tesla's Shanghai Gigafactory resume operations and expressing gratitude to the local government for mobilizing resources, sending skilled workers back to plant for closed loop production and help the plant to disinfect.


In addition, the letter also revealed that Tesla plans to build a new plant near the current Shanghai plant park to produce the Model 3 and Model Y, which is expected to increase annual production capacity to 450,000 vehicles and become Tesla's "world leader".


Tesla's Shanghai plant delivered 484,100 vehicles in 2021, representing 51.7% of Tesla's total global shipments last year. The construction of the second plant is expected to increase the total production capacity of the Shanghai plant to 1 million vehicles per year.


Earlier, Tesla's factory in Shanghai reopened on the 19th of last month after a 22-day downtime. Reuters notes that this is the longest suspension of production at the plant since deliveries began at the end of 2019.


According to previous reports, 8,000 employees arrived on the first day of Tesla's reopening. Production and office premises were disinfected daily, and epidemic prevention work was carried out strictly. Tesla's Gigafactory Senior Director of Manufacturing, said Tesla will ramp up production gradually to reach full production in one shift.


The Shanghai Tesla Gigafactory is located in the Shanghai Lingang Industrial Zone. The plant is China's first wholly foreign-owned car manufacturing project and Tesla's first superfactory outside the US.