Tesla Produced Its Two Millionth Electric Car In Shanghai

Tesla celebrates the production of the two millionth electric car at the Giga Shanghai plant (also known as Gigafactory 3) in China, which produces the Model 3 and Model Y.

Tesla Giga Shanghai went into operation in late 2019, after an unprecedentedly quick construction, which started on January 7, 2019. Initially, the production concerned only the Model 3, but in late 2020/early 2021 the Model Y entered production and sales.

The factory produced the first million electric cars in August 2022, within 33 months, according to the company. The second million units were achieved in just 13 months.

For reference, Tesla’s cumulative production (all plants) is currently at about five million units, which means that Shanghai is already responsible for two-fifths of all Teslas (potentially more than half this year).

The Tesla Giga Shanghai is the world’s largest all-electric car production site, with the installed manufacturing capacity believed to be above 1 million units annually. Tesla “cautiously” describes the plant’s capacity at over 750,000 units annually, but the data clearly shows that it’s significantly more (over 935,000 units were sold locally or exported over the past 12 months).

It’s worth noting that Tesla was the first foreign carmaker that was allowed to open a wholly-owned manufacturing site, instead of a 50/50 joint venture in China.

Currently, Giga Shanghai factory is producing mostly Model Y (about two times more than the Model 3). Most recently, the plant started production of the significantly refreshed Model 3.

The Chinese factory initially was focused on the local market, but later it became Tesla’s main export hub, supporting surrounding markets, as well as Europe and recently Canada.

Through the end of July, exports exceeded 215,000, while local sales 325,000. It’s possible that exports will continue to increase, matching local sales at some point in the future.

One of the main questions is whether the Giga Shanghai will also produce new Tesla cars – especially the new, affordable ones (like what is planned in Mexico), or if it will stick with the Model 3/Model Y duo.

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