Tesla to invest $187.91 million to expand production capacity at Shanghai plant

Tesla to invest $187.91 million to expand production capacity at Shanghai plant

According to the state-backed Beijing Daily newspaper, Tesla Inc plans to invest up to 1.2 billion yuan $187.91 million to expand production capacity at its Shanghai factory that will allow it to employ 4,000 more people at the site.

The information was attributed to the Shanghai government platform for companies' environmental information disclosures.

The investment amount was redacted in the document Tesla released on November 23 on the platform when Reuters accessed the document on Friday.

The expansion will allow Tesla to add 4,000 staff, which is the number of people the plant can employ to 19,000. According to the filing, there won't be any change to the models the factory currently produces, as well as the amount of production capacity that will be increased.

The Shanghai factory has a capacity of up to 500,000 cars a year, and it currently has the capacity to produce Model 3 and Model Y vehicles at a rate of 450,000 total units a year.

The automaker's China sales are on the rise even though regulatory pressure is mounting due to consumer disputes over product safety and scrutiny over how the firm handles data. Last month, Tesla said it had built a research centre and a data center in Shanghai to store data locally.

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

The Shanghai factory is owned by Tesla and is the first foreign passenger car plant in China exempt from being operated by a joint venture.