Tesla, Inc. TSLA has a thriving manufacturing base in Shanghai that has emerged as its export base in the region. With the inordinate delay in the opening of Giga Berlin, Tesla has fallen back on its Chinese manufacturing plant to ship out vehicles for deliveries in Europe.
The EV maker is now looking to increase its investment in Giga Shanghai.
What Happened: Tesla is planning to increase parts production capacity at Giga Shanghai to meet growing export demand, CnEVPost reported, citing a document the company filed with the Shanghai government.
The document is an environmental assessment report on the first phase of the parts production expansion project.
The expansion will reportedly be in the form of adding workshops, augmenting manpower and improving equipment startup rates.
The new investment is over and above the $200 million the company announced in November for increasing employees at the plant.
Related Link: Why Tesla Is No Longer Working On A Lower-Priced EV
Why It's Important: China and Giga Shanghai are key to Tesla's ability to maintain its EV market leadership. Additionally, margins of Giga Shanghai-made cars are better than the ones produced at its Fremont plant.
Tesla reportedly aims to increase the annual production capacity of its Chinese plant to more than one million units over the next few years.
In 2021, Tesla's made-in-China deliveries stood at 473,078 units compared to Giga Shanghai's production capacity of 450,000 units.
At last check, Tesla shares were down 1.74% at $807.27.
Related Link: Elon Musk Goes After SEC (Again): Accuses Regulator Of Harassment With Its 'Unrelenting Investigation'
Photo: Courtesy of tesla.com
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