Tesla’s Gigafactory Shanghai has reached a remarkable milestone by producing its two millionth electric vehicle (EV).
This significant accomplishment solidifies Gigafactory Shanghai’s position as the most productive EV factory globally, surpassing even Tesla’s Fremont Factory.
A Rapid Ascent to the Top
What makes this milestone even more remarkable is its relatively short period to attain this feat.
The factory began construction in December 2018 and commenced production in December 2019. Electrek notes it surged to become the world’s largest and most productive electric vehicle factory within two years, eclipsing competitors by a wide margin.
The factory’s rapid rise owes much to its strategic location in Shanghai’s pilot free trade zone.
Song Gang, senior director of manufacturing at Tesla Gigafactory Shanghai, underscored this advantage, stating, “Tesla’s production speed is inseparable from the superior business environment in Shanghai, especially the Lin-gang special area of the Shanghai pilot free trade zone.”
Tesla’s Gigafactory Shanghai made headlines last August when it celebrated the production of its one-millionth vehicle.
A Step Towards 1 Million Annual Production Capacity
With the announcement of the two millionth vehicle, Tesla is edging closer to an astonishing annual production capacity of 1 million. This is unprecedented for a factory exclusively producing full-size battery-electric cars.
Currently, the factory produces the immensely popular Model 3 and Model Y vehicles, which have seen substantial demand in the Chinese market.
We reported in June that a new concept store in China can construct an electric vehicle for the company in 45 seconds, and this astonishing process is replicated at the Giga Shanghai facility.
Giga Mexico: Potential Delays and Challenges
While Gigafactory Shanghai basks in its success, Tesla faces potential challenges on another front.
Teslarati reports that Tesla’s plans for Giga Mexico may be moving slower than expected. Initially eager to support Giga Mexico production, Chinese suppliers have been asked to wait, indicating potential delays.
In June 2023, Chinese suppliers estimated Giga Mexico’s start of production in Q1 2025. However, it appears that Tesla may have underestimated the permitting process in Mexico.
The Mexico site might not be ready for construction until 2027, a few years later than initial expectations.
Cybertruck: Delay Speculations and Concerns
Amidst these developments, the much-anticipated Tesla Cybertruck is poised to make its debut.
CEO Elon Musk initially aimed to hand over the first customer trucks in late September. Production kicked off over the summer, and sightings of the truck are becoming more frequent. However, speculations about possible delays loom.
Insider reports of a leaked internal email where Musk demanded that the Cybertruck be “designed and built to sub 10-micron accuracy,” a precision challenge that experts argue may not be achievable at the production phase.
This demand has raised questions about potential production setbacks and the size of initial batches.
Furthermore, some Cybertruck order-holders have expressed concerns about the lack of details. With the official launch just weeks away, customers still do not know the pricing or exact dimensions.
Industry standards typically involve releasing pricing and build details well in advance, especially for a highly competitive market like pickup trucks.