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Tesla planning new Shanghai plant as soon as next month to double its China capacity: report
It appears that Tesla might have already decided on the location of its next big factory. Based on recent reports, it appears that Tesla may be looking to build another vehicle production facility in Shanghai — and it could be starting sooner than expected.
Citing individuals familiar with the matter, Reuters noted that Tesla is currently looking to work on its new Shanghai plant as early as next month. This should allow the company to more than double its production capacity in China. It should also help Tesla meet the increasing demand for its vehicles in foreign territories. The cost of the project is yet to be announced.
The publication noted that once the new facility is fully ramped, Tesla would have the capacity to manufacture up to 2 million cars per year from its China operations. Reuters’ sources also noted that the new vehicle production facility would be located in the vicinity of Gigafactory Shanghai. It would then be interesting to see if the new facility would be considered as a completely new Gigafactory or if it would be considered as an expansion of Giga Shanghai.
Tesla has been pretty secretive about its plans to build its next big electric vehicle factory, with CEO Elon Musk stating during the Q4 and FY 2021 earnings call that the company is looking at new locations this year. Musk noted that Tesla would be looking at new locations to see “what makes the most sense” and that an announcement would likely be made by the end of the year. Considering how useful Giga Shanghai has been, however, it would not be surprising if Tesla has decided to build another factory in China.
Giga Shanghai has been Tesla’s ace in the hole for the past year. Since its lightning-quick construction, the facility has built high-quality Model 3 and Model Y that have since been exported to other countries. Last year alone, Tesla’s China-based factory accounted for about half of the 936,000 vehicles that the company delivered globally, as per data from the China Passenger Car Association. Tesla also noted earlier this month that its China revenue more than doubled in 2021 to $13.8 billion.
Amidst the delays in projects such as Giga Berlin, the quick progress of facilities like Giga Shanghai and Giga Texas are all but highlighted. During Tesla’s 2021 Annual Shareholders Meeting, for example, Musk confirmed that Gigafactory Shanghai already exceeds the Fremont Factory in production. Musk also noted that he appreciated the fact that Tesla China’s team has shown great results with very little drama. “Actually, I’d just like to give a special hand to the Tesla China team. So it’s the best quality, lowest cost, and also low drama. So it’s great,” Musk said.
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Elon Musk
Tesla CEO Elon Musk reveals new details about Robotaxi rollout
The first Tesla Robotaxi unit was spotted in Austin earlier today, and CEO Elon Musk is revealing some cool new details.

Tesla CEO Elon Musk has revealed new details about the company’s relatively imminent rollout of the Robotaxi platform as the suspected launch date of June 12 continues to near.
Earlier today, the first video showing the first driverless Tesla Robotaxi in Austin was shared on X, just a day after the City officially listed the company as an autonomous vehicle operator on its website. Tesla is listed as a company in the “Testing” phase.
🚨 BREAKING: The first Tesla Robotaxi has been spotted in Austin!
It’s has the word “Robotaxi” inscribed on the side, and it’s very clear that there is nobody in the driver’s seat.
It does appear that someone is in the passenger’s seat. https://t.co/6BdTfd4B8p pic.twitter.com/dygWCeQ5kZ
— TESLARATI (@Teslarati) June 10, 2025
The initial details of the Robotaxi are being revealed by Musk, who is carefully releasing small tidbits that seem to show the capabilities of the entire Tesla fleet, and not necessarily just the vehicles that will be involved in the initial rollout in Austin.
First Tesla driverless robotaxi spotted in the wild in Austin, TX
His first tidbit is one that many Tesla owners and fans will already know: many Teslas are capable of this driveless performance, but Full Self-Driving is not yet refined to the point where the software is quite ready to handle it. Current versions are robust, but not prepared for driverless navigation. The hardware, however, will enable Teslas to be Robotaxis, even if they’re already purchased by owners:
These are unmodified Tesla cars coming straight from the factory, meaning that every Tesla coming out of our factories is capable of unsupervised self-driving! https://t.co/n94ln0Uas6
— Elon Musk (@elonmusk) June 10, 2025
This is one of the biggest advantages Tesla has over other vehicle makers. Simply put, the Over-the-Air software updates that will roll out to FSD users will eventually make their cars into Robotaxis as well.
However, Musk shed some details on the version of FSD that is being run in these new Robotaxis that were spotted. Musk said that the version these Robotaxis are running is a new version, but will soon “merge to main branch.”
There is also an even newer version that has four times the parameters as this newer version that the test-stage Robotaxis are using, but Musk admits that this needs significant refinement before it is released to the public.
It’s a new version of software, but will merge to main branch soon.
We have a more advanced model in alpha stage that has ~4X the params, but still requires a lot of polishing.
That’s probably ready for deploy in a few months.
— Elon Musk (@elonmusk) June 10, 2025
As of now, Tesla is simply teasing the actual launch date of the Robotaxi program, but Bloomberg reported earlier this month that it will occur on June 12.
News
First Tesla driverless robotaxi spotted in the wild in Austin, TX
The short clip suggests that Tesla may be ramping up its preparations for its robotaxi rollout in Austin.

A recent video posted on X has provided a first look at Tesla’s driverless robotaxi, which is expected to be deployed in Austin, Texas, this month. The vehicle was a new Tesla Model Y, which was followed by what appeared to be a manned chase car.
The short clip suggests that Tesla may be ramping up its preparations for its robotaxi rollout in Austin.
The First Robotaxi Sighting
It was evident from the short clip that the Tesla robotaxi was operating completely driverless. In the video, which was posted on X by @TerrapinTerpene, the driverless Tesla could be seen confidently making a turn. The vehicle looked and behaved like any other car on the road, save for the fact that there was no one in the driver’s seat.
Interestingly enough, the short video also provided a teaser on where Tesla will place its “robotaxi” logo on its self-driving cars. Based on the video, the robotaxis’ logo will be tastefully placed on the front doors, making the vehicles look sleek and clean.
Initial Rollout Imminent
Recent reports have suggested that Tesla is already starting the testing phase of its robotaxi service in Austin, Texas. Expectations are also high that Tesla’s initial fleet of self-driving vehicles will be utilizing a lot of teleoperation to ensure that they operate as safely as possible.
Updates to Austin’s official website recently have hinted at Tesla’s robotaxi launch. Just this Monday, Tesla was listed as an autonomous vehicle (AV) operator on Austin’s official Department of Motor Vehicles (DMV). Other AV operators listed on the site are Waymo and Zoox, among others.
Elon Musk, for his part, has noted that by the end of June, the public in Austin should be ready to take rides in Tesla robotaxis without an invitation. He also noted in late May that Tesla has been busy testing driverless cars on Austin’s city streets without any incidents.
News
Tesla Model Y proudly takes its place as China’s best-selling SUV in May
The Model Y edged out competitors like the BYD Song Plus.

The Tesla Model Y claimed its position as China’s best-selling SUV in May, with 24,770 units registered, according to insurance data from China EV DataTracker.
The Model Y edged out competitors like the BYD Song Plus, which recorded 24,240 registrations, as well as Geely’s gasoline-powered Xingyue L, which took third place with 21,014 units registered, as noted in Car News China report.
Return To The Top
The Model Y’s return to the top of China’s SUV market follows a second-place finish in April, when it trailed the BYD Song Plus by just 684 units. Tesla China had 19,984 new Model Y registrations in April, while BYD had 20,668 registrations for the Song Plus.
For the first five months of 2025, Tesla sold 126,643 Model Ys in China, outpacing the Song Plus at 110,551 units and BYD’s Song Pro at 80,245 units. This is quite impressive as the new Tesla Model Y is still a premium vehicle that is significantly more expensive than a good number of its competitors.
Year-Over-Year Challenges
Despite its SUV crown, Tesla’s year-over-year performance in China is still seeing headwinds. May sales totaled 38,588 units, a 30% year-over-year decline. From January to May, Tesla delivered 201,926 vehicles in China, a 7.8% drop year-over-year. These drops, however, are notably affected by the company’s changeover to the new Model Y in the first quarter.
Exports from Tesla’s Shanghai Gigafactory also fell, with 90,949 vehicles being shipped from January to May 2025. This represents a decline of 33.4% year-over-year, though May exports rose 33% to 23,074 units.
China’s electric vehicle market, meanwhile, showed robust growth. Total NEV sales, which includes battery electric vehicles (BEVs) and plug-in hybrids (PHEVs), reached 1,021,000 units in May, up 28% year-over-year. BEV sales alone hit 607,000 units, a 22.4% increase.
Considering the fact that China’s BEV market is extremely competitive, the Tesla Model Y’s rise to the top of the country’s SUV rankings is extremely impressive.
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