Local media says that the production of the 2022 Tesla car accounted for 25% of the total car production in Shanghai.
According to Chinese local media reports, Tesla Inc (NASDAQ: TSLA) vehicles accounted for nearly a quarter of total vehicle production in Shanghai last year. The 25% US auto production value in 2022 underscores the pace of increased production in China.
Last year, Tesla produced a vehicle production value of 183.9 billion yuan ($26.4 billion) in Shanghai. According to an official of the Shanghai Municipal Economics and Information Commission, this figure was 23% of the city’s total auto industry output. Moreover, over 50% of Tesla’s global deliveries last year were produced at its Shanghai facility. Reports said that the factory, which rolled out the first Tesla EV in 2019, can now produce up to 1.1 million vehicles annually.
The Shanghai government official also said that the output value generated by the Chinese factory increased overall industrial production by 1.3 percentage points in 2022. According to Chen Keli, Tesla’s push to localize parts purchases has created 100,000 supply jobs. In addition, the US electric vehicle manufacturer’s operations have introduced 60 Chinese parts manufacturers into its global supply chain.
Chen further explained that local authorities will continue to cooperate with Tesla to advance AI initiatives in Shanghai. This development marks a significant shift in the Chinese city’s drive toward Tesla’s self-driving and robotic units. Tesla vehicles were previously banned from Chinese military compounds and some government facilities in 2021. At the time, authorities expressed concern that cameras attached to electric vehicles collected sensitive data.
The news of Tesla’s Shanghai production cars comes after electric car prices have soared in China
Earlier in the month, Tesla raised the prices of its Model S and X cars in China by about $3,000. Having previously lowered the prices of its products, the company chose to increase in order to remain competitive.
On Tesla’s first-quarter earnings call, CEO Elon Musk said the company is targeting higher sales volumes than higher margins. Furthermore, Musk added that he expects Tesla to “make a big profit with autonomy” over time. At the time, the outspoken business executive explained:
“We have taken the view that paying for larger volumes and a larger fleet is the right choice here in exchange for lower volume and higher margin. However, we expect that, over time, our cars will be able to generate significant profit through autonomy.”
Musk also added:
“We think we are laying the foundation here, and then it is better to ship a large number of cars with a lower margin and then harvest this margin in the future because we have complete independence. This is a very important point.”
Musk is stepping down as CEO of Twitter to former NBCU President Linda Iaccarino
In other recent developments, Tesla shares saw slight gains as Musk prepares to step down as CEO at Twitter. The Tesla chief previously intended to vacate the position before starting the search for a new CEO. With Twitter’s new CEO, Linda Iaccarino office resume In about six weeks, Tesla investors seem happy Musk has got his priorities right. Instead, the outgoing Twitter CEO will take over as CEO and CTO of the microblogging platform he bought in October 2022.
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Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify cryptocurrency stories down to the bare essentials so that anyone anywhere can understand without much background knowledge. When he’s not deep into cryptocurrency stories, Tolo enjoys music, loves to sing, and is a movie lover.
