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    Tesla To Build A Second Factory In Shanghai?

    May 06,2022 | Chloe Lacour

    Build a second factory in Shanghai, or increase production capacity on the basis of the Shanghai Super Factory? Tesla is doing multiple-choice questions.

    It was reported earlier that Tesla mentioned in a thank-you letter that it plans to build a new factory near the Shanghai factory park to expand production capacity. The new plant is expected to produce Model 3 and Model Y models with an annual capacity of 450,000 vehicles. After the completion of the expansion of the new factory, the total production capacity of Tesla's Shanghai Gigafactory will be increased to 1 million vehicles per year.

    A Tesla insider told the first financial reporter: "It's not a new factory, but a capacity increase based on the current Shanghai Gigafactory." As of press time, Tesla has not yet decided whether to build a new factory. Reply to reporters.

    Earlier, multiple EIA information has shown that Tesla will increase the production capacity of the existing Shanghai Gigafactory.

    On November 26 last year, Tesla announced the EIA of the production line optimization project in the second phase of the Shanghai Gigafactory (Phase I). The EIA report shows that the project is an expansion project, which is carried out in the existing new model production area (ie, the production area of ​​the second phase of the Shanghai Super Factory), and the total investment of the production line optimization project is as high as 1.2 billion yuan.

    The EIA report shows that the production line optimization project is mainly for the expansion of stamping workshops, body workshops, painting workshops, final assembly workshops, and logistics operation centers. Tesla said that the project will increase production capacity by increasing working hours, increasing the number of employees, and increasing the frequency of material turnover, but the EIA report did not disclose the amount of increased production capacity.

    The Shanghai Gigafactory is Tesla's most important production base in the world. Whether it is a new factory or an expansion of the original factory, it is a sure thing for Tesla to increase its production capacity in China.

    The production capacity of the Shanghai Gigafactory is planned to be 450,000 vehicles. In 2021, Tesla will produce 930,000 vehicles and deliver 936,000 vehicles, of which the Shanghai Gigafactory has delivered about 484,100 vehicles (including exports), and the actual delivery volume has exceeded the plan. production capacity, accounting for 51.7% of Tesla's cumulative global deliveries in 2021.

    At present, whether in China or Europe, Tesla has been in a state of short supply. As a global export center, the production capacity of the Shanghai Gigafactory has been "stretched". According to Tesla's official website, the current pickup cycles of the domestically produced Model 3 and Model Y are 20 to 24 weeks and 10 to 14 weeks, respectively. According to media reports, in Europe, the pickup cycle of some Tesla products is even as long as one year.

    Capacity has become an important factor restricting the growth rate of Tesla's deliveries. At the 2021 earnings conference, Tesla CEO Elon Musk said that the company can produce 1.5 million cars this year, and that car deliveries will increase by about 60% over the same period last year.

    In order to further expand production capacity, in March and April this year, Tesla’s Berlin Gigafactory and Tesla’s Texas Gigafactory started production and deliveries one after another. Although new factories in Europe and North America have been put into operation, it is difficult for the new factory to replace the global position of Tesla's Shanghai Gigafactory in the short term.

    A person familiar with European auto operations told reporters that most European auto companies have encountered major problems in production due to the shortage of spare parts and the conflict between Russia and Ukraine. Although Tesla's Berlin plant has finally been put into production, it will take time for its production capacity to ramp up and to resolve the supply of parts. The Shanghai Gigafactory will still be the main exporter to the European market for some time to come.

    According to statistics from cleantechnica, in the first quarter of 2022, Tesla won the global new energy vehicle sales champion with 310,400 units. BYD, which has already announced the discontinuation of traditional fuel vehicles, has only sold 30,000 fewer new energy vehicles than Tesla and is catching up.

    Production capacity has become a problem that both car companies will face. BYD has said earlier that the number of undelivered orders has reached 400,000 vehicles; Musk has mentioned that it will build a new super factory in Asia.

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