Tesla to expand Shanghai factory, begin battery production

Images show that Tesla has environmental impact approval for expansion from the current 1.25 million vehicles to 1.75 million.

Photo by Kuang Da

Photo by Kuang Da

By ZHANG Mingrui


Tesla has plans to expand its Shanghai factory, according to reports from Reuters. Tesla has submitted an application to expand car production and start making lithium-ion pouch batteries

Leaked screenshots circulating online show that Tesla has obtained environmental impact assessment approval for the expansion. Upon completion, the factory's annual powertrain capacity is expected to increase from the current 1.25 million to 1.75 million.

Although the public notice period was said to be from May 11 to May 17, no official information could be found when Jiemian News searched the relevant websites.

During the 2023 Tesla shareholder meeting, Elon Musk said the company planned to make 20 million vehicles by 2030, requiring several more factories, each with a capacity for about 2 million vehicles.

Tesla's factory in Shanghai manufactured 726,000 vehicles in 2022, over half of Tesla's production.

Tesla must also make more batteries and has found new suppliers to reduce costs.

Tesla is also seeking to establish a production line for pouch batteries. While pouch batteries are common in consumer electronics, their use in the automotive industry is not widespread, and Tesla has never used them. The production line's capacity aligns with the needs of the Model Y.

Recent reports suggest that Shanghai is in the final stages of preparing for the production of a redesigned Model 3. Since the beginning of this month, some employees have been required to store their phones in lockers outside the production line to prevent leaks of vehicle images.

The redesigned Model 3 is expected to be longer, more sporty, and have a redesigned interior.

Jiemian News contacted several sales personnel at Tesla showrooms who had no official information regarding the redesign. Typically, sales personnel undergo sales training several months before a redesign is confirmed.