It’s no secret that Tesla is behind on meeting the demands of customers with vehicle production and delivery, thanks in significant part to the fact that its Shanghai Gigafactory was out of commission for a time that affected its ability to produce cars worldwide. This was what it was, but it may have spurred Tesla to expand the facility to not only catch up, but produce additional vehicles each year.
Tesla announced plans to expand its Shanghai, China Gigafactory in a recent letter obtained by Drive Tesla Canada. According to the letter, which thanked local Chinese authorities for aiding in getting the factory back to working capacity after a three-week shutdown, added and confirmed that it wants to expand the facility. To do this, Tesla wants to build an additional building onto the Shanghai Gigafactory that would produce up to around 450,000 additional vehicle builds of the Model 3 and Model Y a year.
Tesla’s Shanghai Gigafactory was shut down throughout March for a substantial amount of time. During Tesla’s Q1 2022 earnings results call, Zach Kirkhorn claimed that the company lost about a full month worth of build volume, which Kirkhorn expects will affect the company’s overall bottom line when it comes to future quarters as early as its fiscal Q2 2022. Even so, during the same call, Elon Musk claimed that the factory was set to get back to production “with a vengeance.” This very well could be the vengeance he was referring to as not only will it help to bolster Tesla’s production in the region, but continue to bolster it in coming years.
It remains to be seen when Tesla will start or finish the expansion of its Shanghai facility, but it seems the company is prepared to start this expansion shortly. As we await its results, stay tuned for more details and information here at Shacknews.