Tesla Giga Shanghai aims to increase production capacity with RMB 1.2B expansion project

(Credit: WuWa)

Tesla invested RMB ¥1.2 billion (about $180 million) into Giga Shanghai’s latest expansion project. Tesla China’s expansion project is expected to increase the gigafactory’s production capacity, making Giga Shanghai even more formidable than it is now.

Tesla plans to invest RMB ¥85 million ($13 million) of its RMB ¥1.2 billion investment in environmental protection. The project is expected to start in December 2021 and be completed by April 2022.

In a public EIA report, Tesla stated it has completed the carbon footprint and carbon emission accounting for Giga Shanghai’s expansion. The report also stated that the project will mainly focus on Giga Shanghai’s “Phase 1” and “Phase B” production area to increase the production capacity of existing models, as per a report from China News Network.

Tesla plans to expand and optimize the Shanghai gigafactory’s stamping workshop, the body workshop, the painting workshop, the final assembly workshop, and the logistics operations center. The EIA report also mentioned that no new production equipment will be installed after the expansion. Instead, Tesla China will rely on existing production equipment.

Tesla China also plans to increase its workforce, work hours, and the frequency of material turnover. Tesla China estimates that 4,000 new employees will be hired for Giga Shanghai, bringing the total workforce to 19,000 employees.

For some perspective, Giga Shanghai reportedly produced more than 1,600 Model Y vehicles per day and 2,000 Model 3 units per day back in Q3 2021. It is well-known that Tesla China aims to improve its production number every quarter.

Last weekend, Giga Shanghai’s holding lot seemed filled to the brim with vehicles, hinting that an expansion might be necessary. Giga Shanghai is currently handling production for Asia and Europe as Tesla’s main export hub. Giga Berlin may take over production for Europe once its starts operations. However, Giga Shanghai will likely remain a cornerstone in Tesla’s production plans.

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Tesla Giga Shanghai aims to increase production capacity with RMB 1.2B expansion project
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