Tesla to invest $188mn to expand Shanghai factory capacity

26 November 2021 - 09:12
By Reuters
An aerial view of Tesla Shanghai Gigafactory in Shanghai, China.
Image: Xiaolu Chu/Getty Images An aerial view of Tesla Shanghai Gigafactory in Shanghai, China.

Tesla Inc plans to invest up to 1.2 billion yuan (roughly R3,040,163,945) to expand production capacity at its Shanghai factory that will employ 4,000 more people at the site, state-backed Beijing Daily newspaper reported on Friday.

The newspaper attributed the information to a Shanghai government platform for companies' environmental information disclosures.

The investment amount was redacted in the document Tesla published on November 23 on the platform when Reuters accessed the document on Friday.

Tesla did not respond to a Reuters request for comment.

The filing showed that expansion will allow Tesla to add 4,000 staff, taking the number of people the plant can employ to 19,000. There will be no change to the models the factory currently produces, according to the filing, which also did not specify how much production capacity will be increased.

Tesla's Shanghai factory was designed to build up to 500,000 cars a year, and currently has the capacity to produce model 3 and model Y vehicles at a rate of 450,000 units a year.

The automaker's China sales are surging even though regulatory pressure is mounting following consumer disputes over product safety and scrutiny over how the firm handles data. Last month, Tesla said it had built a research centre and separate data centre in Shanghai to store data locally.

It currently ships China-made model 3s to Europe, where it is building a factory in Germany. In October, it sold 54,391 China-made vehicles, including 40,666 for export, China Passenger Car Association data showed.

The Shanghai factory is wholly owned by Tesla and is the first and only foreign passenger car plant in China exempt from being operated by a joint venture.