Due to the rapid ramp-up of Model 3 and Model Y production, Gigafactory Shanghai could be Tesla’s ace in the hole this year. However, if recent videos of the site are any indicator, it appears that Giga Shanghai is still expanding, with development on a massive site south of the main factory now underway.
Tesla’s Gigafactory in Shanghai is currently producing about 450,000 vehicles per year. This is especially impressive given the factory is only in its second year of operation and the Model Y has only been on the market for a few months. However, even at this point, and in the midst of Tesla’s efforts to release a more affordable $25,000 car for the Chinese market, the need for a larger manufacturing facility has surfaced.
Preliminary work on the new site south of the main Giga Shanghai complex has been going on for some time, according to local reports from China. However, when construction began on the site, the name of the organization that would be establishing a presence in the area was kept a secret. Tesla was finally revealed to be the land’s sole bidder, and although the bidding process is still underway, the site is already being prepared for construction.
The land itself is very extensive, occupying 460,000 square meters (113.6 acres). Although it is smaller than the current Gigafactory Shanghai venue, it will likely be sufficient to construct a dedicated facility to manufacture a high-volume vehicle, such as the much-anticipated $25,000 car expected to be announced soon.
Tesla is expanding its presence in China with the introduction of the locally manufactured Model Y. The Model Y competes in the lucrative crossover market. Demand for both the Model 3 and Model Y appears to be high in China despite the availability of more accessible local alternatives and the usual wave of anti-Tesla media attention. With a $25,000 car in its lineup, Tesla will be able to reach a much wider market, eventually transforming the company into a true mass-market automaker.
Watch a recent flyover of the Gigafactory Shanghai complex in the video below.