Elon Musk has verified that Tesla’s Gigafactory Shanghai is currently running at maximum capacity, suggesting that Tesla’s Chinese operations are likely to maintain peak performance through the end of 2024.
The Tesla CEO shared this update on social media platform X, responding to a report claiming Chinese car buyers were turning away from Tesla’s electric vehicles as competitors flood the market with more advanced models and hybrids gain popularity.
Musk’s rebuttal was brief and to the point. “Believing the news is silly. Our Shanghai factory is running at max capacity,” he wrote on X.
As Tesla’s primary vehicle export hub, Giga Shanghai plays a crucial role in the company’s global operations. Despite only producing the Model 3 sedan and Model Y crossover, it stands as Tesla’s highest-output facility today. Earlier reports this year suggested a reduction in Model Y production from March to June, but more recent updates from local news sources indicate that Giga Shanghai has rebounded strongly.
Musk’s recent statement on X essentially confirms that Giga Shanghai has returned to full operational capacity. This announcement coincides with Tesla China achieving its highest domestic vehicle sales for the year in August 2024, with 63,456 vehicles sold in the local auto market. Estimates also show that Tesla China has sold approximately 388,000 vehicles in China’s domestic market from January to August.
In its Q2 2024 Update Letter, Tesla reported that Giga Shanghai boasts an annual vehicle production capacity exceeding 950,000 units. If the facility maintains this full capacity until year-end, regions supplied by Giga Shanghai are likely to enjoy a robust inventory of Model 3 and Model Y units. This bodes well for Tesla, especially considering the positive reception of the reengineered Tesla Model 3 thus far.
The continued high-capacity operation of Giga Shanghai underscores Tesla’s strong position in the Chinese market and its ability to meet global demand, despite increasing competition and evolving consumer preferences in the electric vehicle sector.
