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Tesla plans to double Giga Shanghai output, making it ‘world’s largest vehicle export hub’

Tesla Gigafactory Shanghai General Assembly (Source: Tesla)

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Tesla is planning to double Gigafactory Shanghai’s production capacity by adding a new building that could supplement the Chinese factory with 450,000 additional vehicle builds every year.

A letter from Tesla, which provided details regarding the automaker’s process of reopening the factory following a three-week closure due to a COVID-19 outbreak, detailed the plans. Tesla wants to expand the plant’s manufacturing output by building a new plant on another piece of land near the Gigafactory Shanghai campus, according to Reuters. The new facility would effectively double the production output of the Shanghai plant, which produced 484,100 vehicles in 2021. This accounted for 51.7 percent of Tesla’s total deliveries last year, outpacing the Fremont Factory, which is reportedly operating at as much as 20 percent above capacity.

The plans would make Gigafactory Shanghai “the world’s largest vehicle export hub,” as Tesla utilized the factory to keep up with demand for the company’s cars in Europe. Before Tesla’s Gigafactory Berlin was given the green light to begin production and deliveries, Tesla was shipping Model 3 and Model Y vehicles built in Shanghai to Europe as bureaucratic red tape kept the European plant from beginning deliveries and production.

Tesla has had plans to expand Gigafactory Shanghai’s operations for some time, but the nature of the additional manufacturing lines was unknown. An environmental assessment released in early 2022 showed that Tesla planned to implement a “new model line” in Shanghai, which would add thousands of new employees, bringing the plant’s total workforce to around 19,000 workers.

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Plans for the expansion were expected to begin in December 2021 and be completed by April 2022. The project would cost ¥85 million ($13 million), regulatory paperwork revealed.

Tesla resumed production in Shanghai in April, and manufacturing has already rebooted to a pace of 80 percent, according to reports. Tesla received help from authorities in Shanghai’s Lingang Special Area, who helped carry out numerous processes to help the facility regain operational status following the shutdown.

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

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Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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SpaceX secures win as US labor board drops oversight case

The NLRB confirmed that it no longer has jurisdiction over SpaceX.

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Credit: SpaceX

SpaceX scored a legal victory after the National Labor Relations Board (NLRB) decided to dismiss a case which accused the company of terminating engineers who were involved in an open letter against founder Elon Musk. 

The NLRB confirmed that it no longer has jurisdiction over SpaceX. The update was initially shared by Bloomberg News, which cited a letter about the matter it reportedly reviewed.

In a letter to the former employees’ lawyers, the labor board stated that the affected employees were under the jurisdiction of the National Mediation Board (NMB), not the NLRB. As a result, the labor board stated that it was dismissing the case.

As per Danielle Pierce, a regional director of the agency, “the National Labor Relations Board lacks jurisdiction over the Employer and, therefore, I am dismissing your charge.”

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The NMB typically oversees airlines and railroads. The NLRB, on the other hand, covers most private-sector employers, as well as manufacturers such as Boeing. 

The former SpaceX engineers have argued that the private space company did not belong under the NMB’s jurisdiction because SpaceX only offers services to “hand-picked customers.” 

In an opinion, however, the NMB stated that SpaceX was under its jurisdiction because “space transport includes air travel” to get to outer space. The mediation board also noted that anyone can contact SpaceX to secure its services.

SpaceX had previously challenged the NLRB’s authority in court, arguing that the agency’s structure was unconstitutional. Jennifer Abruzzo, the NLRB general counsel under former United States President Joe Biden, rejected SpaceX’s claims. Following Abruzzo’s termination under the Trump administration, however, SpaceX asked the labor board to reconsider its arguments. 

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SpaceX is not the only company that has challenged the constitutionality of the NLRB. Since SpaceX filed its legal challenge against the agency in 2024, other high-profile companies have followed suit. These include Amazon, which has filed similar cases that are now pending.

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Tesla accuses IG Metall member of secretly recording Giga Berlin meeting

The union has denied the electric vehicle maker’s allegations.

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Credit: Tesla Manufacturing/X

Police seized the computer of an IG Metall member at Tesla Giga Berlin on Tuesday amid allegations that a works council meeting was secretly recorded. 

The union has denied the electric vehicle maker’s allegations.

In a post on X, Gigafactory Berlin plant manager André Thierig stated that an external union representative from IG Metall attended a works council meeting and allegedly recorded the session. Thierig described the event as “truly beyond words.”

“What has happened today at Giga Berlin is truly beyond words! An external union representative from IG Metall attended a works council meeting. For unknown reasons he recorded the internal meeting and was caught in action! We obviously called police and filed a criminal complaint!” Thierig wrote in his post on X.

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Police later confirmed to local news outlet rbb24 that officers did seize a computer belonging to an IG Metall member at the Giga Berlin site on Tuesday afternoon. Tesla stated that employees had contacted authorities after discovering the alleged recording.

IG Metall denied Tesla’s accusations, arguing that its representative did not record the meeting. The union alleged that Tesla’s claim was simply a tactic ahead of upcoming works council elections.

The next works council election at Giga Berlin is scheduled for March 2 to 4, 2026. The facility’s management had confirmed the dates to local news outlets. The official announcement marks the start of the election process and campaign period.

Approximately 11,000 employees are eligible to participate in the vote.

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The previous works council election at the plant took place in 2024, and it was triggered by a notable increase in workforce size. Under German labor law, regular works council elections must be held every four years between March 1 and May 31.

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Elon Musk’s xAI plants flag in Bellevue AI hotspot

The lease places xAI’s new office in one of the region’s fastest-growing tech hubs.

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UK Government, CC BY 2.0 , via Wikimedia Commons

Elon Musk’s artificial intelligence company xAI has leased a full floor at Lincoln Square South in downtown Bellevue, WA, as per city permit filings. 

The lease places xAI’s new office in one of the region’s fastest-growing tech hubs.

Public records indicate that xAI leased roughly 24,800 square feet in Lincoln Square South. The location was previously occupied by video game company Epic Games. Lincoln Square South is part of the Bellevue Collection, which is owned by Kemper Development Co.

The lease was first referenced in January by commercial real estate firm Broderick Group, which noted that an unnamed tenant had secured the space, as stated in a report from the Puget Sound Business Journal. Later filings identified xAI as the occupant for the space.

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xAI has not publicly commented on the lease.

xAI hinted at plans to open an office in the Seattle area back in September, when the startup posted job openings with salaries ranging from $180,000 to $440,000. At the time, the company had narrowed its location search to cities on the Eastside but had not finalized a lease.

xAI’s Bellevue expansion comes as Musk continues consolidating his businesses. Last week, SpaceX acquired xAI in a deal that valued the artificial intelligence startup at $250 billion. SpaceX itself is now valued at roughly $1.25 trillion and is expected to pursue an initial public offering (IPO) later this year.

Musk already has a significant presence in the region through SpaceX, which employs about 2,000 workers locally. That initiative, however, is focused largely on Starlink satellite development.

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Bellevue has increasingly become a center for artificial intelligence companies. OpenAI has expanded its local office footprint to nearly 300,000 square feet. Data infrastructure firms such as Crusoe and CoreWeave have also established offices downtown.

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