BEIJING, March 10 (Reuters) – China is the world’s largest auto market, and Tesla is now preparing to expand production capacity in China as it invests in a $2 billion component plant to localize its supply chain, Reuters reported. In December, the Shanghai auto plant began delivering model 3 electric vehicles, and it is preparing to add battery, electric motors and motor controller lines to the plant.
One important component in the automotive thermal management system is a cooling tube, and according to documents submitted to the Shanghai government, Tesla is preparing to nearly double its cooling tube capacity from 150,000 units a year to 260,000 units a year, according to documents filed with the Shanghai government. As for how much other components will be added, Tesla did not give a specific number.
The planned production line does not include a battery cell manufacturing line, but includes a battery assembly line, which is imported from overseas and then assembled at the Shanghai plant, the document said. In addition, Tesla is also preparing to increase the stamping production line, speed up the production of cars in Shanghai.
The Shanghai plant is crucial throughout Tesla’s layout, aiming to produce 150,000 Model 3 cars a year and then continue to increase production capacity, eventually increasing annual production to 250,000, including Model Y production.
Although Tesla has a huge plan, it is now being destroyed by the virus. In February, the outbreak led to an 80 per cent drop in passenger car retail sales in China.