Tesla In China: Electric Car Company To Ramp Up Production

The ever-looming threat of coronavirus is not bothering Telsa.

Elon Musk’s electric car company is reportedly poised to ramp up production of certain parts at its factory in China. The news is based on Shanghai government documents obtained by Reuters.

According to the report, Tesla plans to add several new lines to the $2 billion facility, which will be used to increase the production of batteries, electric motors and motor controllers. The company is particularly ambitious when it comes to cooling pipes, which the documents indicate it plans to increase production in China from 150,000 to 260,000 a year.

This move is likely a play to strengthen the company’s presence in China, the second-largest market for cars in the world. As of the end of 2019, 70% of parts used in Tesla cars made and sold in China were imported. It has previously said its goal is to make Chinese production entirely local by the end of this year.

“The Shanghai factory is key to Tesla’s growth strategy," a Telsa spokesperson said. “There it aims to produce 150,000 Model 3 sedans and later hike output to 250,000 a year.”

Production began in December at the factory, dubbed “Gigafactory Shanghai.” This came roughly a year after construction began on the ambitious factory. By 2021, it will begin producing Model Y vehicles in addition to the Model 3.

Tesla is the first foreign automaker that China has allowed to build a factory on its soil without the partnership of a local company. The company has nonetheless faced a handful of troubles in China, being called out by the government for delivering vehicles without completely up-to-date chips, which are necessary for self-driving. Tesla explained that this was due to a chip shortage and said it would upgrade the part for anyone who bought a vehicle assembled with the older one.