Tesla’s Giga Shanghai Now Sources 98% of Parts Locally

Nearly every part in a Shanghai-built Tesla now comes from China. According to CnEVPost, Tesla says Giga Shanghai’s parts localization rate has reached 98%, up from the “over 95%” figure it has used for the past several years.

Tesla shared the new number in a press release during the ninth China International Import Expo (CIIE), which opened in Shanghai this week.

400+ Local Suppliers

Tesla now works with more than 400 tier-1 suppliers in China, and more than 60 of them have joined its global supply chain. That means parts developed with Chinese suppliers are making their way into Teslas built in other parts of the world.

Some of that work goes beyond just supplying parts. The Model Y L’s seat armrests and leg supports were co-developed with Chinese suppliers to suit local buyers. The six-seater first launched in China and has since expanded to Japan, South Korea, Australia, and the U.S., where it launched in July.

Inside Tesla’s Biggest Factory

Giga Shanghai broke ground in January 2019 and started production by the end of that year. It’s Tesla’s largest factory, with an annual capacity of about 1 million vehicles, mainly the Model 3 and Model Y.

Tesla says about 93.3% of the plant’s roughly 730,000 square meters (7.9 million sq. ft.) is used for production. There are no fancy reception halls or executive-only dining rooms and elevators, so more space goes toward building cars. The factory produces a vehicle about every 30-plus seconds and reuses more than 94% of its industrial waste.

In the first 10 months of this year, Giga Shanghai’s wholesale sales, including exports, reached 810,889 vehicles, up 21.42% from last year. Tesla China sold 67,829 vehicles in October alone, up about 10% year over year.

Tesla’s Other Factories Are Growing Too

Giga Shanghai isn’t the only Tesla factory making changes. Giga Texas is reportedly adding a night shift to double production, while Tesla is planning a second production hall at Giga Berlin that would eventually take its output to 1 million vehicles per year, matching Shanghai.

At CIIE, Tesla is showing off the new Model Y Performance, an exploded-parts display of the Model Y, Optimus, and the Cybercab. Tesla has now delivered more than 10 million vehicles worldwide, and with Shanghai’s sales up more than 20% this year, its biggest factory doesn’t look like it’s slowing down.