Tesla China Factory Expands Production Again, Production Line Optimization Project Completed

On September 19, TOPCARS learned from the public platform of China's Shanghai Municipal Government that the second phase of the Tesla Shanghai Super Factory) production line optimization project was completed and started commissioning on September 1, with an expected acceptance period of September 1 to November 30.

TOPCARS has learned that the total investment in the project was $170 million, of which $12 million, or 7.08%, was invested in environmental protection, and that the actual construction started on December 21 last year and was expected to be completed in April of this year, although it was eventually delayed until September.

The production line optimization project is Tesla's expansion within the existing factory, mainly by increasing production tempo to expand production capacity. According to the environmental assessment report published in November last year, the production line optimization project is mainly for the expansion of the stamping workshop, body shop, painting workshop, final assembly workshop and logistics operation center.

In the report, Tesla revealed that the project would increase production capacity by increasing working hours, increasing the number of employees and increasing the frequency of material turnover, but the EIA report did not disclose the amount of capacity increase. According to Tesla's estimates, the line optimization project will increase the number of employees by 4,000 upon completion, bringing the total number of employees to 19,000.

The line optimization project further expands Tesla's capacity in the Shanghai Super Factory and solidifies the Shanghai Super Factory's position as Tesla's largest factory in terms of global capacity. According to Tesla's second quarter earnings report this year, the annualized production capacity of the Shanghai Superfactory is already higher than 750,000 units, followed by the California plant with an annualized capacity of nearly 650,000 units.


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