Tesla confirms plans to expand Giga Shanghai in letter thanking local authorities for getting factory back up and running

In a letter thanking local authorities for their assistance in getting Giga Shanghai back up and running after a recent COVID-19 related shutdown, Tesla confirmed plans to expand their factory in China.

According to the letter seen by Reuters, Tesla plans to build a new plant close to the existing Giga Shanghai in the Lingang, Pudong New Area.

The new plant will have an annual production capacity of 450,000 Model 3 and Model Y cars, and with that extra capacity will make Giga Shanghai “the world’s largest vehicle export hub.”

The letter confirms a report last month that stated Tesla was planning to start construction on a new plant soon.

The letter wasn’t just about plans to expand the factory, but also to thank local authorities who provided assistance to reopen Giga Shanghai.

Tesla was forced to shutter the factory in late March due to COVID-19 related lockdowns which meant workers and suppliers were not able to make it to work.

After a 22-day shutdown, the automaker was finally able to reopen in a “closed loop” system where employees live and work at the factory.

The letter describes how a company managed to transport 6,000 workers by bus to Giga Shanghai that enabled them to reopen.

“They fought for three consecutive days, working round the clock and non-stop to guarantee our company’s workers could return to the factory,” Tesla said in the letter.

As of this past weekend, Tesla has been able to ramp up production to more than 80% capacity, signaling they still have a chance as posting strong Q2 production and delivery figures.

Tesla is running the most productive assembly plant in the US

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