Tesla Invests 1.2 Billion Yuan to Expand Production of Shanghai Plant by April 2022

On Tuesday, the Public Access Platform to Corporate and Institutional Environmental Information of Shanghai published Tesla’s environmental impact access (EIA) report for its production line optimization project in the second stage of the Shanghai Super Factory (Phase I).

According to the EIA report, total investment in a production line optimization project is as high as 1.2 billion yuan ($187.7 million), of which the environmental protection investment is 85 million yuan, accounting for 7.08%. It is expected to start construction in December this year and be completed in April next year.

Tesla also stated in the EIA report that the company has completed its carbon footprint and carbon emissions accounting for the project.

At present, Tesla divides its Shanghai Super Factory into four areas, namely, vehicle production area, test area, parts production area and joint workshop (maintenance workshop). Tesla states in the EIA report that the project is aimed at expansion, which is carried out in the existing new model production area, and the production models remain unchanged with those before the expansion. That is to say Model 3, Model Y and related derivative models are still maintained.

According to the firm’s report, the production line optimization project mainly includes the expansion of stamping workshop, vehicle body workshop, painting workshop, final assembly workshop and logistics operation center. According to Tesla’s estimation, after the completion of the production line optimization project, it will recruit another 4,000 employees, increasing the total number of employees in the whole plant to 19,000.

The second stage of Tesla’s Super Factory Project (Phase I) was originally divided into two stages – A and B – but later the R&D center was moved out of Phase B and was constructed in Phase C instead. According to the EIA report, the Shanghai Super Factory has completed construction of Phase A and Phase B, and the overall parts adjustment project and Phase C project are still under construction.

However, Tesla China announced earlier that the Shanghai R&D Center and Shanghai Factory Data Center had been completed. Tesla said at that time that the R&D Center of the R&D Innovation Center had set up 28 laboratories, focusing on the development of the firm’s software and hardware, processes and technologies in China, undertaking application adaptation and standard testing in the Chinese market, and participating in the research and development of AI machine learning around the world.

SEE ALSO: Tesla Sets Up R&D Innovation Center and Data Center in Shanghai

According to the EIA report, the R&D center undertakes various performance tests of vehicle manufacturing and parts production in its Shanghai factory, including the material laboratory and battery laboratory.

The re-expansion of Shanghai Super Factory is inseparable from Tesla’s market positioning. This year Tesla positioned Shanghai Super Factory as the company’s main automobile export center. In addition to undertaking delivery work in the Chinese market, the Shanghai Super Factory also exported a large number of Model 3s and Model Ys to the Asia Pacific region and Europe.