Tesla to invest $188m to expand Shanghai Gigafactory, finish in April
Published: Nov 26, 2021 01:34 PM
Tesla Shanghai Gigafactory Photo: Courtesy of Tesla

Tesla Shanghai Gigafactory Photo: Courtesy of Tesla

US electric vehicle (EV) giant Tesla will invest another 1.2 billion yuan ($188 million) to upgrade its manufacturing facilities in its Shanghai Gigafactory, including for environmental protection, as the company's business thrives in China's flourishing post-COVID-19 EV market.

According to information in the assessment report published on Shanghai's corporate environment information public platform, Tesla will optimize the production lines of its Gigafactory (phase one) in Shanghai. It plans to invest 1.2 billion yuan in the project, of which 85 million yuan will go to environmental protection.

Construction is expected to begin in December and to be completed in April 2022. Tesla has already calculated the project's carbon track and emissions. 

Tesla did not respond to an interview request from the Global Times as of press time. 

According to the assessment report, the new investment is an expansion and will be carried out in its car manufacturing zones. After completion, Tesla will stick to producing existing car models the Model 3 and Y, and derivative car models. 

The project will lead to an increase in employees in Tesla's Shanghai plant, but it did not reveal how much production capacity will increase as a result of the new investment. 

Tesla's decision to expand its Shanghai plant shows the EV giant's progress in the world's largest EV consumption market, although it has faced many challenges as well, including service quality and safety concerns. 

Tesla set a sales record of 56,000 cars in September in China, up 27 percent on a monthly basis, data from the China Passenger Car Association showed. 

It also completed building a research and development and innovation center in Shanghai in October, a move which analysts said also proves its optimism in the Chinese market. 

Global Times