Tesla will make a major expansion to its Shanghai Gigafactory and increase annual production to an additional 450,000 Model 3s and Model Ys beyond what it is already capable of manufacturing. The company has confirmed this through a statement to the local authorities for their help and assistance after the break due to the increase in cases of COVID-19.

The intentions of the expansion of the Shanghai Gigafactory Tesla have been rumored since last February. Once completed, the total production capacity of the factory would be about 2 million cars per year.

These plans are separate and in addition to the current expansion that Tesla is doing to its Gigafactory in China, which began last December 2021 and theoretically concluded in April. The company invested a total of 188 million dollars and will employ 4,000 more people.

The document sent on May 1, to which Reuters had access, confirms the plans and details the immense efforts by authorities to achieve a closed-loop system in which factory workers slept on the premises, and thus managed to guarantee operations and at the same time prevent infections.

After 22 days stopped, the Tesla Gigafactory Shanghai resumed operations, managing to return to 80% of the total production capacity of the facilities.

Tesla’s Shanghai Gigafactory Expansion Is In Line With Elon Musk’s Plans

Elon Musk recently revealed that one of Tesla’s two main focuses for the next few years is to significantly increase car production. The other focuses on fully autonomous driving.

Tesla wants to maintain a rate of increase of at least 50% in year-on-year production until 2030. Between 2020 and 2021 the increase was practically 100%, going from manufacturing half a million vehicles to almost a million.

Tesla’s goal is, by 2022, to manufacture no less than one and a half million 100% electric vehicles. For this, they have recently opened a new Gigafactory in Berlin, which will supply the European market, and another in Austin, which will exclusively manufacture the Model Y with 4680 batteries. Next year they will also do the Cybertruck.

In addition to those two new openings, the Shanghai Gigafactory and an annual production increase of almost half a million cars, it would practically guarantee that Tesla’s sales expansion plans are fulfilled.

Tesla, since the first quarter of 2020, has reported increases in the number of vehicles delivered per period. But above all, it has seen significant jumps in figures from the first quarter of 2021.

During the latest conferences after the announcement of financial results, the company has mentioned that they are experiencing a significant increase in interest in electric mobility, and have been producing fewer cars than they sell for several quarters. Demand outstrips supply, by far. Currently, if you want to buy a base Model 3 (white paint, 18-inch wheels, black interior), you have to wait until May 2023.