Not so long ago, people wondered if Tesla would be able to produce enough vehicles to meet demand. We can say that the company has responded well to the call, in particular with the opening of factories located elsewhere than on American soil, in Germany and China.
At this last location, the Californian firm has been operational since 2019. On May 1, the company confirmed that it was going to build a second plant to meet strong demand, both locally and from elsewhere.
Tesla made the announcement via a letter sent to officials at Shanghai’s Lingang Special Zone, where Tesla’s current factory in China is located.
And when referring to the special area of Lingang, a nuance is necessary. Generally, to assemble vehicles in China, a manufacturer must rely on a local partner. However, Lingang is a free trade zone located south of Shanghai. The Tesla factory there is the first foreign facility to be 100% owned by a foreign company. It saw the construction of 484,130 vehicles in 2021, more than half of the 936,000 models delivered by Tesla that year, a record.
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In its statement, Tesla says it is aiming for annual production of 450,000 vehicles at the new facility which will be near the existing factory. At least that’s what Reuters reports, which obtained a copy of the letter. The first vehicles to see the light of day inside the new factory are expected to be the Model 3 and the Model Y.
Tesla has also just completed the erection of a factory near Austin, Texas. This brings the Model Y to life and will be called upon to assemble the Cybertruck, the start of production of which has been postponed to 2023. Tesla has also just completed a factory near Berlin, Germany, to build Model 3 and Model Y.
Tesla’s original factory in Fremont, California still produces the Model S, X, 3 and Y, and the company also has a new factory in Reno, Nevada. This is used for Tesla’s energy storage components and products.