Charge! Tesla China’s Production Capacity Quadruples This Year to Reach 600,000 Vehicle Target

published: 2021-12-27 9:30 | editor: | category: News

Tesla Gigafactory Shanghai’s 2021 output is expected to reach 600,000 vehicles, surpassing their California factory to become Tesla's highest producing factory. The Gigafactory also exceeded its original target of 500,000 vehicles, a growth rate that is almost four times last year.  

Tesla Gigafactory Shanghai has recorded the most impressive experiences in automotive industry history.

Breaking ground in December 2018 and starting production in December 2019 is amazing enough. It then produced more than 150,000 electric vehicles in 2020, becoming the third pillar of Tesla profitability. With 2021 not yet over, Gigafactory Shanghai once again set a new record, with an annual output of 600,000 vehicles.

In its 4Q20 earnings report, Tesla itself forecast that Gigafactory Shanghai will have a production capacity of approximately 450,000 vehicles in 2021. However, in August 2021, Tesla China raised its production target to 500,000 and now this number has exceeded 600,000 vehicles.

From September to November, Tesla China produced more than 50,000 vehicles every month, 40% of which were exported, with 60% sold to local Chinese customers.

According to previous reports, since China’s electric vehicle subsidies will begin winding down next year, Tesla China has mobilized in an effort to clear all orders received prior to November before December 31 so that car owners can qualify for this year’s subsidy.

According to statistics, the average age of employees at Tesla Gigafactory Shanghai is only 26. If, according to Elon Musk, all Tesla employees are allocated Tesla shares, these young people will create considerable momentum towards a production blitz, and they will continue attracting more employees to Gigafactory Shanghai.

As a result, exceeding an annual 2021 output of over 900,000 vehicles is almost guaranteed. As to whether there is a chance to exceed one million vehicles? It is unlikely. The global automotive industry is mired in supply chain issues. Tesla was only able to achieve this present result by relying on the work ethic of Gigafactory Shanghai employees and a successful firmware update which allowed Model 3/Y Teslas to use chips that could be stably sourced.

However, the Model S/X is not so lucky. Basically, it can almost be said that Tesla did not produce the Model S/X in 2021 at all with less than 20,000 total vehicles finished for the entire year, which is less than a quarter of last year’s tally. Therefore, it is unlikely that Tesla's production capacity will increase in the next month.

Looking forward to next year, the launch of two Gigafactories in Texas and Berlin will give Tesla production capacity the opportunity to make a bid for 2 million vehicles in 2022. More importantly is the Model Y, which may stampede to one million vehicles sold in one attempt.

On the other hand, although China’s production capacity is high, the proportion of exports is also high. Overall, Tesla's sales in the Chinese market have a slight downward trend, which is, of course, related to multiple price hikes this year. After the Berlin Gigafactory goes online next year, the real demand for Tesla in the Chinese market will be more visible.

(Image: Tesla)

announcements add announcements     mail print
Share