Tesla boosts parts production capacity at Giga Shanghai
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Tesla (NASDAQ:TSLA) plans to expand parts production at its $2B Shanghai factory as demand for exports, continues to rise, according to Reuters.
A document filed by Tesla (TSLA) with the city government indicated that the EV player will add production workshops, as well as boost the number of workers and lengthen the time that factory equipment is operational.
The capacity of Tesla's Shanghai factory is currently set at a combined 450K Model 3 and Model Y vehicles per year, although the automaker delivered 178K EVs from Giga Shanghai in Q4.
In November, local media reported that Tesla plans to invest up to 1.2B yuan ($190M) to expand production capacity at the Shanghai factory.
What does a higher mix of Shanghai production mean for the company? Shanghai operations have been estimated to run on 40% gross margins as compared to 20% at Fremont.
Shares of Tesla (TSLA) rose 1.60% in premarket trading to $834.64. TSLA trades below its 50-day, 100-day and 200-day moving averages.