Tesla commences construction of mega factory in Shanghai for megapack production

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23rd May 2024 – (Shanghai) Tesla, the U.S. carmaker, celebrated a significant milestone as it broke ground on a colossal factory in Shanghai dedicated to manufacturing its renowned energy-storage batteries, Megapacks. This move exemplifies Tesla’s commitment to investing in the world’s second-largest economy, defying the notion of “decoupling” and “de-risking” from China that some U.S. politicians have espoused.

Spanning an impressive area of approximately 200,000 square meters, the new plant represents Tesla’s first mega factory outside the United States and serves as a testament to the company’s expansion in Shanghai. The project, situated in the Lin-gang Special Area of the China (Shanghai) Pilot Free Trade Zone, entails a substantial investment of around 1.45 billion yuan (approximately 203.94 million U.S. dollars), as reported by the Chinese administration overseeing the area.

Tao Lin, Vice President of Tesla, expressed her belief that the new plant signifies a pivotal moment for both Shanghai and the company. She emphasized that operating in a more open environment would enable Tesla to achieve remarkable speed at the Megapack factory, facilitating the global supply of large-scale energy-storage batteries manufactured in China.