Tesla’s Gigafactory Shanghai production facility in China seems to be operating under business as usual, despite reports of a halt in production or delays in manufacturing.
It was reported earlier this week that Tesla’s Gigafactory Shanghai facility was experiencing delays with expansion projects after rumors circulated that a large plot of land located next to the company’s China-based facility was not going to be pursued by the automaker. Media reports took this as a delay in Tesla’s expansion plans, but workers at the site indicated to a Global Times reporter that there are plenty of things going on that will help Tesla increase its production volume at the site.
“Several expansion projects in the park are being carried out simultaneously, and the expansion project for the plant’s phase two construction is at the stage of ceiling planking,” one construction worker who is on-site told the Global Times.
Another worker who builds ventilation pipes said that “construction is approaching the end, and the workload has been reduced.”
Tesla didn’t respond to the Global Times inquiry for comment.
The rumors of the delays had to do with Tesla’s rumored acquisition of an additional 113.9 acres of land directly next to the Shanghai factory, which the company never made public intentions of buying. While the acquisition of the site could have increased Giga Shanghai’s production capacity, which currently stands at 450,000 vehicles annually, up another 200,000 to 300,000 vehicles, Tesla seems to be having no problems with its already-occurring expansion, according to what workers on the site said.
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It seems that there has been plenty of miscommunication regarding what Tesla’s plans are for its international factories. Not only has Giga Shanghai been the subject of rumored delays that go on to be debunked only hours later, but Giga Shanghai seems to be a subject of the false narrative as well. Giga Berlin was reportedly facing another six-month delay and would not begin production until January 2022. This has yet to be confirmed by Tesla, who still slates its initial production phases at the German plant for late 2021. Meanwhile, local politicians believe the site could begin operation as soon as late-Summer.
Giga Shanghai has been one of Tesla’s biggest advantageous in the steadily growing electric vehicle market. In China, where EVs are becoming widely adopted, Tesla remains the most successful manufacturer in the region thanks to the ever-growing popularity of both the Model 3 and Model Y. While Tesla is dealing with some competition from other affordable, economical EVs like the Wuling HongGuang Mini EV, Tesla is still the choice of consumers when it comes to all-electric luxury midsize sedans or crossovers.