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Tesla China Plant Nearing Capacity Spurs $188 Million Upgrade

  • Company said in 2020, factory’s yearly capacity 450,000 cars
  • Carmaker to hire 4,000 additional staff for Shanghai facility
The Tesla Gigafactory in Shanghai.

The Tesla Gigafactory in Shanghai.

Photographer: Qilai Shen/Bloomberg
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Tesla Inc. plans to invest as much as 1.2 billion yuan ($188 million) in its Shanghai plant to upgrade equipment as the factory gets closer to exhausting its current capacity, according to people familiar with the matter. 

The facility, which broke ground in January 2019, is expected to reach the limit of its production capacity this year, the people said, asking not to be identified as the details are confidential. The electric vehicle pioneer, headed by Elon Musk, said in its 2020 annual report that the installed annual production capacity of the factory is 450,000 vehicles.