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Shanghai's Total Auto Production Boosted by Tesla, Accounting for Nearly 25%

Updated: Jan 9

According to local media reports, Tesla Inc. played a prominent role in Shanghai's automotive manufacturing sector last year, with its output accounting for almost a quarter of the city's total production value. Since launching its first vehicle from the Shanghai factory in 2019, the American electric car manufacturer has rapidly increased its production capacity in China.


In 2022 alone, Tesla's production value reached an impressive 183.9 billion yuan ($26.4 billion), representing 23% of Shanghai's overall automotive manufacturing production.


Credit: Qilai Shen/Bloomberg/Getty Images


During a media tour of Tesla's Shanghai plant, Chen Kele, an official from the Shanghai Municipal Commission of Economy and Information, revealed these figures. Furthermore, more than half of Tesla's global deliveries in 2022 originated from the Shanghai facility, which now boasts a maximum annual production capacity of 1.1 million cars.

Tesla's operations in China not only contributed significantly to the city's automotive industry but also had a positive impact on Shanghai's overall industrial production. Chen stated that Tesla's China factory alone increased the city's industrial production by 1.3 percentage points last year. The company's efforts to localize parts procurement also led to the creation of 100,000 jobs at suppliers and the integration of 60 Chinese parts manufacturers into Tesla's global supply chain.


Chen emphasized the intention of local authorities to further strengthen collaboration with Tesla, particularly in the development of autonomous driving technology and robot modules in Shanghai. This marks a shift from the state's previously cautious approach to Tesla's self-driving functions. It's worth noting that in 2021, Tesla faced restrictions on its vehicles' access to Chinese military complexes and certain government facilities due to concerns about data security stemming from camera usage.


 

  • Tesla Inc. played a prominent role in Shanghai's automotive manufacturing sector, contributing nearly 25% of the city's total production value.

  • In 2022, Tesla's production value in Shanghai reached an impressive 183.9 billion yuan ($26.4 billion), accounting for 23% of the city's overall automotive manufacturing production.

  • More than half of Tesla's global deliveries in 2022 originated from the Shanghai facility, which has a maximum annual production capacity of 1.1 million cars.

  • Tesla's operations in China positively impacted Shanghai's industrial production, with the company's China factory alone contributing a 1.3 percentage point increase.

  • The localization efforts of Tesla's parts procurement resulted in the creation of 100,000 jobs at suppliers and the integration of 60 Chinese parts manufacturers into Tesla's global supply chain.



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