Tesla intends on increasing production for certain car parts at its $2 billion factory in China, Reuters reports.
According to government documents, Tesla plans to add lines at its Shanghai factory to increase output of battery packs, electric motors, and motor controllers.
As of December, roughly 70 per cent of the parts used in Tesla’s Chinese-produced models are imported from overseas. While the car manufacturer has not commented in the reports, the document submitted by it to the Shanghai government adds that it will almost double its annual building capacity for cooling pipes to 260,000 sets a year, a significant jump up from the 150,000 sets currently being produced.
Read Also: Tesla Celebrates Milestone As Its 1 Millionth Car Rolls Off The Assembly Line
Tesla has said it wants to localize its entire supply chain in China by the end of this year. In addition to increasing the production of certain parts, the car manufacturer is building an additional stamping line to speed up production at the Shanghai facility. Although the new production lines will not include battery cell manufacturing, the government document did reveal the site will pack out-sourced battery cells.
Tesla aims to produce 150,000 Model 3 sedans at the Chinese factory before bumping up production to 250,000 units a year, including the Model Y SUV. If this production ramp-up is achieved, it will help the car manufacturer in its goal of delivering more than 500,000 vehicles globally be the end of 2020.
