Tesla’s Shanghai Plant Reaches 98% Local Parts, 400+ Suppliers

Nearly all components for Teslas built in Shanghai now originate in China. According to CnEVPost, Tesla says Giga Shanghai’s parts localization rate has reached 98%, up from the “over 95%” figure it has cited for the past several years.

Tesla disclosed the updated figure in a press release at the ninth China International Import Expo (CIIE), which opened in Shanghai this week.

400+ Local Suppliers

Tesla now works with more than 400 tier-1 suppliers in China, and more than 60 of them have joined its global supply chain. As a result, components developed with Chinese partners are being used in Teslas assembled in other regions.

Collaboration extends beyond sourcing: the Model Y L’s seat armrests and leg supports were co-developed with Chinese suppliers to suit local preferences. The six-seater first launched in China and has since expanded to Japan, South Korea, Australia, and the U.S., where it launched in July.

Inside Tesla’s Biggest Factory

Giga Shanghai broke ground in January 2019 and began production by the end of that year. It is Tesla’s largest factory, with an annual capacity of about 1 million vehicles, mainly the Model 3 and Model Y.

Tesla says about 93.3% of the plant’s roughly 730,000 square meters (7.9 million sq. ft.) is devoted to production. There are no reception halls or executive-only dining rooms and elevators, allowing more space to be dedicated to manufacturing. The factory produces a vehicle about every 30-plus seconds and reuses more than 94% of its industrial waste.

In the first 10 months of this year, Giga Shanghai’s wholesale sales, including exports, reached 810,889 vehicles, up 21.42% from last year. Tesla China sold 67,829 vehicles in October alone, up about 10% year over year.

Other Tesla Factories Are Expanding

Giga Shanghai isn’t the only facility evolving. Giga Texas is reportedly adding a night shift to double production, while Tesla is planning a second production hall at Giga Berlin that would eventually take its output to 1 million vehicles per year, matching Shanghai.

At CIIE, Tesla is displaying the new Model Y Performance, an exploded-parts showcase of the Model Y, Optimus, and the Cybercab. The company has delivered more than 10 million vehicles worldwide, and Giga Shanghai’s sales are up more than 20% this year.