Tesla confirms plans for second Chinese plant

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Tesla confirms plans for second Chinese plant
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Tesla aims to double Chinese production to almost a million vehicles per year.

, and now the company has confirmed plans for construction of a second Chinese plant to keep up with strong demand both locally and abroad.

Tesla made the confirmation in a letter sent on May 1 to officials in Shanghai's Lingang Special Area, where Tesla's existing plant is located. In its letter, Tesla said it will build a new plant with an annual capacity of 450,000 vehicles close to the existing plant, according towhich obtained a copy of the letter. The first vehicles built at the new plant are expected to be the Model 3 and Model Y.

The Lingang Special Area is a free-trade zone located south of Shanghai. The Tesla plant there is the first vehicle plant in China to be wholly owned by a foreign company. It builds the Model 3 and Model Y, both for local sale and export, and in 2021 it built 484,130 vehicles—or more than half of Tesla's record deliveries of 936,000 vehicles that year.

Tesla recently completed a plant near Austin, Texas, which builds the Model Y and is earmarked to build the Cybertruck, whose start of production is

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