Tesla has reportedly resumed work on ‘Phase 3’ in construction at its Gigafactory in Shanghai, China that will see the facility expanded to support production of the firm’s planned $25,000 electric vehicle.
Local media reports that Tesla initially started preparations for Phase 3 back in 2021 but suspended work on the site’s expansion in 2022. Last April, the company began work on a new energy storage facility in Shanghai that will have an annual output of 40 GWh and commence production in the second quarter of 2024.
The Giga Shanghai site currently produces the Model 3 and Model Y and has an annual capacity of 1.1 million vehicles. Between the January and November period, some 853,603 vehicles rolled out of the factory, equating to one every 37 seconds, making it significantly more efficient than Tesla’s Texas factory where a new car is produced every 76 seconds. Late Auto Post understands that the enlarged factory will have the capacity to build 2 million EVs annually.
Car News China reports that work was paused on the site due to concerns the Chinese government had over Starlink. Earlier this month, Elon Musk said that “significant progress” had been made in its preparations for mass production of the new EV to slot below the Model 3 in Tesla’s range. Despite this, production is not expected to begin until 2025 at the earliest.
Read: Tesla’s Chinese Factory Just Built Its 2 Millionth EV Only 13 Months After Crossing 1 Million Mark
As for the battery facility in Shanghai with an annual capacity of 40 GWh, it is expected to produce cells for global and domestic markets. Tesla will initially source batteries from CATL before shifting to the cells it makes at the new plant.
Tesla’s new entry-level model is currently known as the Model 2. It is expected to hit the market with a design inspired by the Cybertruck and will reportedly spawn both a consumer-focused model and a robotaxi version.
