Tesla Giga Shanghai Produces 2 Millionth Car

Image: Tesla

Tesla is celebrating another milestone. Giga Shaghhai has launched its 2 millionth car. The factory has achieved this result in less than 4 years since the start of production.

On September 6, Tesla once again has a reason to celebrate. The 2 millionth vehicle made in China rolled off the Giga Shanghai line, according to the company. The milestone of producing the 1 millionth vehicle was reached in 33 months after the start of the work at Giga Shanghai. The factory doubled the number of cars produced in just 13 months, which is an excellent result.

In Gigafactory Shanghai, we produced 1 million cars within 33 months, and remarkably, we reached the second million milestone in just 13 months! https://t.co/pYJkZhRSdu

— Tesla Asia (@Tesla_Asia) September 6, 2023

In January 2019, Tesla began building its first factory outside the US. Although the construction of the building was completed in October, it took time to install the equipment and set it up. The first cars left the assembly line in December 2019 and were delivered to the company's employees.

“The increase in Tesla's production speed is inseparable from the superior business environment in Shanghai, especially the Lin-gang special area of the Shanghai pilot free trade zone,” said Song Gang, senior director of manufacturing at Tesla Giga Shanghai. He added that Tesla has grown rapidly due to the area's complete new energy vehicle industry cluster, as well as its advantageous transportation geographic location and high-quality business environment.

Tesla's Giga Shanghai has become the first electric vehicle manufacturing enterprise in China to be wholly owned by a foreign company. According to Lu Yu, an official with the Lin-gang Special Area Administration, Tesla quickly promoted supply chain localization, which led to the intelligent NEV industry becoming the first industrial cluster worth over 100 billion yuan (about $13.89 billion) in the Lin-gang special area.

At present, the localization rate of the Tesla Giga Shanghai production chain exceeds 95 percent, according to a statement by company executives. 99.99 percent of employees are Chinese. Song said the plant has formed a full ecological production chain for auto parts such as batteries, car chips, and precision machining in the Yangtze River Delta region.

“Many Chinese parts suppliers are not only deeply engaged in Tesla's global industrial chain, but also recognized by other international automobile companies,” he said.

Tesla Gigafactory Shanghai delivered over 600,000 vehicles in the first eight months of this year alone. This exceeds the total achieved in 2021 and demonstrates the speed at which production is ramping up. The factory is Tesla's export hub.

© 2023, Eva Fox | Tesmanian. All rights reserved.

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