BREAKING: Tesla reportedly planning to expand production of GigaShanghai plant to 1M vehicles a year


  • Tesla plans to start work on a new plant as soon as March with the move doubling production capacity in China.
  • Giga Shangai will have the capacity to produce up to 2 million cars per year.
  • The new plant will be located in the vicinity of its existing production base in Lingang, Pudong New Area.

According to Reuters, Tesla Inc plans to start work on a new plant in Shanghai as soon as next month as part of a plan to more than double production capacity in China to meet growing demand for its cars in the country and export markets, two people familiar with the matter told Reuters.

With this new plant, Tesla will have the capacity to produce up to 2 million cars per year at its expanded Shanghai facility, the company’s main export hub, according to the people, who asked not to be identified in discussing still-private plans.


According to drone images leaked by Tobias Lindh, over 360 Model Y Giga Berlin made vehicles were seen ealier this week outside the factory. The factory is still waiting for the final permission from the State Environment Agency to start producing vehicles for the European Market. Until now, European customers have been receiving its models from Giga Shangai, where more than 6,500 Model Y and Model 3 were seen last week ready to export.

Giga Berlin (Source: @tobilindh)

Once Giga Berlin is still waiting for the final permition, these models might not be production vehicles but Test-Vehicles instead. These tests are a necessary part before escalation of the production after the approval. Mid-March is the expected date to the final permission for Tesla to start high paced production for the European Market, according to RBB.


Watch Giga Berlin’s video below.

Last week, +6500 Model Y and Model 3 were seen ready to export from Giga Shangai. In addition, another 7,000 Model Y and Model 3 were seen at the Lcuhao Port proving the high efficiency from the Chinese factory. Elon Musk has already mentioned that Giga Shangai tends to focus on exports in the first half of the quarter before focusing its output on the domestic Chinese market in the second half. 

Tesla registered 167,969 vehicles in Europe during 2021, an increase of 70.9% from 2020 and 51% up from 2019. During the year, Tesla sold 26,175 Tesla Model Y, 134 Tesla Model S and 230 Tesla Model X in the European Market.

Revenue rose 65% year over year in the quarter, while net income, at $2.32 billion, was up some 760%, according to Tesla’s statement. The company says they have successfully increased the number of FSD Beta vehicles from a couple of thousand in Q3 to nearly 60,000 vehicles in the US today.

Luchao Port in Shangai

“Our own factories have been running below capacity for several quarters as supply chain became the main limiting factor, which is likely to continue through 2022,” the company said.

Recently,Tesla announced that deliveried 308,600 vehicles in Q4, setting a new record during the last Quarter. In 2021, Tesla delivered a total of 936,172 vehicles in 2021, crushing all the expectations.