Photo: Tesla/Liaoning
When we told you about the rumors that Tesla could establish a new Chinese factory in Shenyang, we made it clear that it did not make much sense considering the investments to expand capacity at Giga Shanghai. Tesla got in touch with Chinese media outlets to deny a plant in the capital of Liaoning, but it did not dismiss it may be planning a second factory there.
According to Sina Finance, the Liaoning province did not take long to take down the page in which it mentioned the Dadong district in Shenyang was preparing for Tesla investments. We had not found the original publication when we searched for it to write the article about the rumor, which may mean that the province had already erased it by that time. Tesla may have contacted Liaoning before making the public statement about that.
The point now is that Tesla did not deny the intention to open a second plant in China. The company’s most recent numbers show that it could use more production capacity, but the investments at Giga Shanghai may be enough to handle the demand.
Tesla is said to have a production capacity of 450,000 in its Chinese factory, but January sales suggest it is way higher than that. If the company sold 60,000 per month, capacity would now be around 720,000 units annually. If Giga Shanghai reaches a capacity of 1.5 million units per year – as the investments are said to target – that would be double the current output.
That said, it would only make sense to invest in a second factory if new products were to be made in China or if the Giga Shanghai expansion was not enough to deal with the demand. At this point, none of the alternatives seem to be valid unless Tesla is planning to export its cars to more markets or to get close to BYD in NEV (new energy vehicle) sales. While Tesla sold 59,845 vehicles in January 2022, BYD sold 93,101 units.
The point now is that Tesla did not deny the intention to open a second plant in China. The company’s most recent numbers show that it could use more production capacity, but the investments at Giga Shanghai may be enough to handle the demand.
Tesla is said to have a production capacity of 450,000 in its Chinese factory, but January sales suggest it is way higher than that. If the company sold 60,000 per month, capacity would now be around 720,000 units annually. If Giga Shanghai reaches a capacity of 1.5 million units per year – as the investments are said to target – that would be double the current output.
That said, it would only make sense to invest in a second factory if new products were to be made in China or if the Giga Shanghai expansion was not enough to deal with the demand. At this point, none of the alternatives seem to be valid unless Tesla is planning to export its cars to more markets or to get close to BYD in NEV (new energy vehicle) sales. While Tesla sold 59,845 vehicles in January 2022, BYD sold 93,101 units.
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