Tesla to spend $188 million to expand Giga Shanghai production capacity

Giga Shanghai is going to be kicking it into high gear next year. Tesla is planning to spend $187.91 million to expand production at the factory, and they will do it without constructing any new buildings or facilities.

Instead, the company will be launching the second phase of their production line optimization project, which according to an environmental information disclosure filed with the government, will begin in December and last until April 2022.

Tesla will focus on increasing the hours of production, increasing the number of employees at the factory, as well as increasing their supply chain turnover rate.

The filing did not specify by how much production will increase, but Giga Shanghai’s current production rate is between 450,000 and 500,000 vehicles per year.

When the production line optimization project is complete, Tesla to employ 4,000 more workers at the factory, increasing the Giga Shanghai head count to 19,000 employees. (via Reuters)

Tesla China has had two blockbuster months in a row. In September the company set a sales record with over 56,000 vehicles sold in the month.

That was followed up by an equally strong October, where more than 54,000 vehicles were sold.

November’s figures will be getting a boost with the introduction of the Model Y Performance, which began deliveries in China just yesterday. The top-of-the-line variant now includes the AMD Ryzen processor, the same one found in the flagship Model S and Model X cars.

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