Tesla is leading the electric vehicles charge, and it is not showing any sign of stopping. In line with its current CEO’s goal of making electric vehicles commonplace, Tesla is aiming to increase its total output by 50 percent every year and ultimately produce 20 million units per year by 2030.
This ambitious roadmap requires Tesla to ramp up its production and expand its facilities. Its Giga Shanghai is turning out to be getting more significant in its global operations, as the plant is well on track to reach one million vehicles per year.
Thanks to the contribution of Giga Shanghai, Tesla looks set to surpass its 750,000 units goal for 2021. The growth is spurred by the increasing popularity of the Model 3 and Model Y and Tesla’s effort to increase the efficiency of its Fremont plant. The American EV maker could even smash the 1,000,000 per annual mark this year.
Tesla has already announced it has achieved a 1,000,000 unit annual run rate, but Giga Shanghai itself could be producing more than 1,000,000 vehicles per year!
This increase in capacity in Shanghai could come as early as next year, with the plant receiving RMB1.2 billion or $180 million to fund its expansion. The plant is massive already, with reports that it will hit 550,000 vehicles per year this year.
With the latest round of updates completed, Giga Shanghai will have the capacity for between 1 and 1.5 million units per year. This figure is achievable by optimizing the Model 3 and Model Y’s production lines more.
Other factors that could help Giga Shanghai achieve the leap in production capacity include the use of Giga Presses, which can make a vehicle chassis in two pieces, eliminating the need to handle almost 500 different parts. The production will also be faster as the Giga Presses will eliminate the need for welding, bolting, or riveting different parts together.
Tesla will also get a boost in production times and costs when it begins to use its structural batteries inside of using the popular skateboard platform.
Reports suggest the upgrades at Giga Shanghai will be completed by April 2022. If that is the case, the second quarter of 2022 will see a surge in Tesla’s production, with more vehicles available for export to other parts of the world.
Giga Factory has become an export hub for Tesla, as it supplies both the Model 3 and Model Y to the European and Asian markets. However, with Giga Berlin in operation, European Tesla buyers will get their vehicles from the German plant.
Unfortunately, Giga Berlin has faced many setbacks solely caused by bureaucracy delays. Tesla has also faced fierce opposition from environmental activists who try to protect the animals on the factory site and the underground water supply. Tesla also had to refile for approval when it added a battery plant, giving the environmental activists another opportunity to try to upset the cart.
However, there are reports that Tesla could get final approval for Giga Berlin in a manner of days, which will allow the company to start production before the year runs out. The first car to be made in the brand new plant is the Model Y which will kick off Tesla’s structural battery plan.
Expanding capacity at Giga Shanghai makes sense for Tesla, as it is rumored to be where it will make the $25,000 electric car that the CEO, Elon Musk, has always wanted to make. The chassis of the cheapest Tesla is said to be made in a single piece by a more powerful Giga Press.
The cheap electric vehicle will be mass-produced and exported globally from China. It will use Tesla’s new battery with iron used to replace the more problematic cobalt in the battery composition. Tesla is also rumored to be in talks with BYD, a Chinese competitor backed by famed investor Warren Buffet, to use its Blade battery which is said to be similar to Tesla’s new 4680 battery.
Musk believes a $25,000 electric vehicle will let more people ditch their internal combustion engine cars. Millions of potential EV drivers have been locked out by the current higher prices of electric cars with decent specs.