Tesla Said Readying Its China Factory for Even Greater Volumes

Tesla Inc. is taking steps to ramp up output at its factory in Shanghai, partly suspending manufacturing capabilities at various points through early August to upgrade production lines, according to people familiar with the matter.

The US-based electric carmaker plans to double its original planned annual target to 1 million cars, said the people, asking not to be identified because the details are private. It will halt most production on its Model Y assembly line for the first two weeks of July while an upgrade is underway, one of the people said, while another person said Tesla will make similar tweaks to its Model 3 production line for a 20-day period starting July 18.

Upgrade work at the factory south of Shanghai is expected to be complete by around Aug. 7, with output of the Model Y SUV then increased to 14,000 units a week, from about 11,000 pre-pandemic, and production of the Model 3 sedan at 7,700 units a week from 5,500 previously, the people said.

The Tesla Inc. Gigafactory in Shanghai, China, on Wednesday, June 15, 2022. Tesla has staged a remarkable comeback in terms of its production in China, with May output more than tripling despite the electric carmaker only recently getting its Shanghai factory back up to speed after the city’s punishing lockdowns.

With the upgraded production facilities and an expanded workforce on production lines, Tesla will be able to make more than 1 million EVs a year in China, the people said. The original installed capacity of the carmaker’s Shanghai plant was 450,000 units, according to its 2020 annual report.