Gary Zhou 
Key Points
- 🚗 Tesla has formally adjusted Giga Shanghai’s annual vehicle capacity in its Q3 2023 Update Letter.
- 📈 The facility’s annual vehicle capacity has been increased to over 950,000, up from the previous >750,000 capacity listing.
- 🏭 Giga Shanghai has been running at near full capacity for several quarters, primarily serving as Tesla’s main export hub.
- 🌍 The factory plays a significant role in Tesla’s global operations, producing the upgraded Model 3 and receiving positive reviews.
- 🆙 The increase in capacity followed the rollout of the upgraded Model 3, known as the Model 3 Highland.
Tesla Giga Shanghai is the company’s largest factory by output. It also serves as Tesla’s primary vehicle export hub. And in the company’s Q3 2023 Update Letter, the electric vehicle maker formally adjusted the facility’s annual vehicle capacity.
In previous quarters, Tesla has listed Gigafactory Shanghai’s annual capacity simply as >750,000 vehicles. This was despite local reports suggesting that the electric vehicle factory could already produce about 1.1 million vehicles per year.
As could be seen in Tesla’s Q3 2023 Update Letter, this was no longer the case, with the electric vehicle maker formally listing the facility’s current installed annual vehicle capacity to over 950,000. Granted, this is still below the 1.1 million vehicles that’s been suggested in local reports, but it is a notable improvement from the >750,000 that’s been listed in previous quarters.
Interestingly enough, Tesla China formally declared an increase in Giga Shanghai’s annual vehicle capacity after the rollout of the upgraded Model 3, better known in electric vehicle circles as the Model 3 Highland. Tesla highlighted Giga Shanghai’s output in the Q3 2023 Update Letter, noting that the facility has generally been running at full capacity for several quarters.
“Other than scheduled downtime in Q3, our Shanghai factory has been successfully running near full capacity for several quarters, and we do not expect a meaningful increase in weekly production run rate. Giga Shanghai remains our main export hub,” Tesla wrote.
Gigafactory Shanghai’s role in Tesla’s global operations has been growing steadily. Giga Shanghai is the sole facility that is producing the upgraded Tesla Model 3 for now, and the all-electric sedan has so far received stellar reviews from both enthusiasts and professionals alike. Giga Shanghai also rolled out a minor update to the Model Y recently, which would likely make it more attractive to consumers.
Check out our coverage of Tesla’s Q3 2023 Update Letter here.
Check out our Q3 earnings call Live Blog, which contains our live coverage of the event, here.
