Tesla has leased a new space in Shanghai, China, set to be used for the company’s largest showroom and service center in the country yet.
Reuters reported on Monday that Tesla has signed a leasing contract with the Shanghai Waigaoqiao Free Trade Zone Group for an 8,000-square-meter (861,000-square-foot) space in the Pudong district, according to a post from the company’s official WeChat account on Saturday. The new site is expected to open in mid-2024 in Xin Park, and the news comes after Tesla last year announced plans to close select stores in China in an attempt to restrategize.
Tesla did not respond to Reuters’ request for comment on the report.
Currently, Tesla has around 300 stores across China. In the company’s strategic shift last year, Tesla said it aimed to close more expensive showrooms in cities in favor of adding suburban stores and service centers that were less costly.
Despite the announcement of a renewed focus on service last year, Tesla continued expanding sales channels locally in China and would not relinquish efforts to increase sales at a normal pace. Additionally, the company last September added more than 300 openings for service positions in an updated push to improve service for customers in China.
Tesla recently celebrated the production of its two millionth vehicle at its Gigafactory in Shanghai, which produces Model 3 and Model Y vehicles for many markets around the world. The automaker has also debuted its refreshed Model 3+, dubbed the “Highland,” in China and in several markets in the past few months, set to begin initial deliveries soon.
More recently, several Model 3+ units have been spotted at Giga Shanghai showing that the company has ramped up production of the updated vehicle at faster rates than with other cars in the past.