American electric car manufacturing giant, Tesla, has been expanding its production capacity over the past few months. According to reports from Shanghai enterprises and institutions, the second phase of Tesla Gigafactory Project (Phase I) – the production line optimization project is on. The public information shows that the Tesla China (Shanghai Super Factory) production line optimization project is complete, and debugging will begin. The report also reveals that the total investment of the Tesla Shanghai Super Factory production line optimization project is 1.2 billion yuan ($171.2 million). Of this number, the company will invest 85 million yuan ($12.1 million) in environmental protection, accounting for 7.08%.
The production line optimization project of the Tesla Shanghai Gigafactory will start on December 21, 2021. After completion today, commissioning will begin. The acceptance period is from September 19, 2022, to November 30, 2022. This production line optimization project is Tesla’s expansion of the existing factory. It will do this mainly by increasing the production rhythm to expand production capacity.
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The publicity document shows that this production line optimization is mainly for the expansion of some workshops. The workshops include stamping workshops, body workshops, painting workshops, final assembly workshops and logistics operation center. At the same time, Tesla claims that the project will increase production capacity by increasing working hours. However, it will also increase the number of employees, and frequency of material turnover. It is expected that 4,000 new employees will be added after the production line optimization is complete.
In 2021, Tesla will deliver 936,200 vehicles worldwide, of which Tesla China will deliver a total of 484,100 vehicles. This means that the Shanghai Gigafactory will contribute more than 50% of the output. On August 15, Tesla CEO, Elon Musk congratulated Tesla’s Shanghai Gigafactory on the rollout of the millionth vehicle. On the same day, Tao Lin, Tesla’s vice president of external affairs, claims that the localization rate of Tesla’s Shanghai Gigafactory’s supply chain now exceeds 95%.