Tesla to start work on new plant in Shanghai next month: Report

Giga Shanghai Tesla

While rumours continue to swirl that Tesla is searching for a location to build a second Gigafactory in China, it looks like they may have already found one, and could start work on it as soon as next month.

According to sources familiar with the plans who spoke to Reuters, the second plant will double Tesla’s production capacity in China up to 2 million cars per year.

The new facility will reportedly be built close to the existing Giga Shanghai in the Lingang, Pudong New Area. The report did not elaborate on whether the new plant would be a standalone facility, or be considered an expansion of Giga Shanghai.

The report also did not reveal the cost of the project, or its timeline for completion.

With either option however, a production rate of 2 million cars per year would put Tesla ahead of several legacy automakers like Toyota (1.6 million), GM (1.4 million), and VW which plans to build 1 million EVs in China by 2023.

If the report is true, the work would start at the same time Tesla is spending $188 million to expand production at Giga Shanghai. That project is scheduled to conclude in April.

Tesla also filed documents with the local government this week to add production workshops, increase the number of workers, and expand the time production equipment is operational, all of which will help the automaker keep up with the growing demand for exports out of China.

Sea of Teslas spotted at Shanghai’s Luchao Port waiting for export

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Founder and Editor-in-chief of Drive Tesla Canada | Darryn@DriveTeslaCanada.ca Have a Tesla tip? Email tips@driveteslacanada.ca, or DM us on Twitter @DriveTeslaca