Tesla invests $188m to expand factory capacity in Shanghai -Beijing Daily

SHANGHAI, Nov. 26 (Reuters) – Tesla Inc (TSLA.O) plans to invest up to 1.2 billion yuan ($187.91 million) to expand production capacity at its Shanghai plant, adding 4,000 to its workforce. can employ at the location, state Beijing Daily newspaper reported on Friday.

The newspaper attributed the information to a government platform in Shanghai for corporate disclosure of environmental information.

The investment amount was redacted in the document Tesla published on the platform on Nov. 23 when Reuters reviewed the document on Friday.

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Tesla did not respond to a request from Reuters for comment.

The application revealed that expansion will allow Tesla to add 4,000 employees, bringing the number of people the plant can employ to 19,000. There will be no change to the models the factory is currently producing, according to the filing, which also did not specify how much production capacity will be increased.

Tesla’s Shanghai plant is designed to produce up to 500,000 cars per year and currently has the capacity to produce Model 3 and Model Y vehicles at a rate of 450,000 total units per year.

The automaker’s sales in China are soaring, though regulatory pressure is mounting after consumer disputes over product safety and control over the company’s handling of data. Last month, Tesla said it had built a research center and separate data center in Shanghai to store data locally.

It is currently shipping the Chinese-made Model 3s to Europe, where it is building a factory in Germany. In October, it sold 54,391 vehicles made in China, including 40,666 for export, according to data from the China Passenger Car Association.

The Shanghai plant is wholly owned by Tesla and is the first and only foreign passenger car plant in China to be exempt from joint venture operation.

($1 = 6.3860 Chinese Yuan)

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Reporting by Brenda Goh; Editing by Himani Sarkar and Christopher Cushing

Our Standards: The Thomson Reuters Trust Principles.

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