In a bid to enhance its automobile industry, the American electric vehicle giant, Tesla is planning to increase car production in its China’s Shanghai plant through a two-shift system and produce over 2,600 vehicles per day from May 16th this year.

Reuters confirmed the development in an internal memo obtained from the auto giant, where it revealed that the company plans to run two shifts at its Shanghai facility starting from May 16 to try to restore manufacturing output as much as possible. As a result, Tesla will produce 2,600 electric vehicles per day at the Shanghai auto plants.

Recently, the plant was closed for nearly three weeks in April this year, and resumed production at the end of April, using a closed-loop system in which workers resided on-site and were routinely tested. Similarly, reports revealed that under the closed-loop plan, Tesla’s stockpile will only last more than two weeks, with logistics a key worry for many other components.

In a similar report, the electric vehicle giant was reported intending to build a second factory in China which would double its production capacity in the world’s biggest auto market. According to reports, the new plant will be located near Tesla’s existing factory in Shanghai’s Lingang, Pudong New Area.

Having a second factory in Shanghai will help Tesla increase its production capacity in order to fulfill the growing demand for its electric vehicles in China and abroad. With this, the automobile giant will be able to produce up to 2 million cars per year in China once the second site is fully operational, making it the automaker’s primary worldwide export hub.

Therefore, Tesla has a significant competitive edge in China over competitor automakers such as BMW, Mercedes-Benz, and Ford Motor since it owns its facility entirely. Stay connected with Techgenyz for more updates.

 

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