The automaker will be able to produce over 1 million cars per year in China
The Model 3 and Model Y will be the first vehicles to be assembled there
This will be Tesla’s third new Gigafactory in two years
Tesla is the most valuable car maker to have ever existed and the best-selling EV brand. This success means the company is already looking to open a new factory, less than a year after having opened one in Texas and one in Germany.
The demand for Tesla vehicles in China, where these two models are the most popular electric cars on the market, is strong enough to warrant a completely new factory instead of just improving the current one.
When it comes online, this new factory is expected to have an annual capacity of 450,000 vehicles, which is close to the output of the current factory, which built 484,130 vehicles in 2021, accounting for half of all of the company’s sales around the world.
By combining the output of both factories, Tesla will be able to handily build more than 1 million cars in China.
This decision comes only a month after the automaker’s Texas factory has been completed and 6 weeks after the Berlin Gigafactory was officially opened. The German plant also builds the Model 3 and Model y, while the American one only builds the Model Y, in preparation for the promised arrival of the Cybertruck, which should be built there.
The new factory will bring the total of factories used by Tesla to build cars up to 5, since the automaker’s original factory in California is still operating an it is the only one to currently produce all of the brand’s models.