Investing 1.2 billion and taking 5 months, Tesla's Shanghai factory expands production again.

On November 26th, according to the Shanghai Public Environmental Information Platform for Enterprises and Public Institutions, the Environmental Impact Assessment (EIA) of the second phase of Tesla Shanghai factory’s production line optimization project is being publicized. This also means that Tesla’s Shanghai factory is officially preparing to expand its production capacity. The EIA report revealed the following information:

  • The total investment for the second phase of the production line optimization project is approximately 1.2 billion yuan, with environmental protection investments of 85 million yuan;

  • Carbon footprint and carbon emissions calculations have been completed for the second phase of the production line optimization project;

  • The second phase of the production line optimization project is estimated to commence next month and be completed in April of next year.

Currently, Tesla’s Shanghai factory has been supporting Europe’s supply and demand issue due to the delayed production start of the factory in Germany. This led to a significant backlog of orders in the Chinese market, and the earliest delivery time for the Model 3/Y is expected to be in the first quarter of next year. However, the longer the order backlog, the higher the potential risk for customer cancellations. Therefore, this expansion not only helps to reduce the backlog of orders and speed up customers’ delivery time, but also partially mitigates the supply issue in Europe.

Source: Caijing

This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email