Tesla plans to increase production capacity in China

The electric-vehicle company is preparing to add production capacity for 250,000 cars a year

Tesla is ramping up its production capacity at Gigafactory Shanghai to manufacture 250,000 cars a year.

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The California-based automaker started production at Gigafactory Shanghai in December 2019, less than a year after breaking ground at the new factory.

Tesla initially spoke about rapidly increasing production to 3,000 units a week, but the goal was moved to produce half a million cars per year at the plant. However, the time to achieving the target is not clear.

"The Shanghai factory is key to Tesla’s growth strategy," a company spokesperson said. "There it aims to produce 150,000 Model 3 sedans and later hike output to 250,000 a year," including the Model Y, according to a Shanghai government filing in 2018.

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Model Y production will be added to the factory next year. Tesla will also be adding a stamping line that would increase its body part production capacity in Shanghai. Reuters reported that Tesla will add production lines for "battery packs, electric motors, and motor controllers."

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The documents, however, don’t show a plan for local battery cell production, as Tesla still plans to use cells sourced from LG Chem and CATL for vehicles made in China.

Amid the coronavirus outbreak in China and globally, Tesla's production and sales have not been impacted.

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