Tesla plans new Shanghai plant to more than double China capacity

Once the new plant is fully operational, Tesla will have the capacity to produce up to 2 million cars per year at its expanded Shanghai facility.

Tesla Inc plans to start work on a new plant in Shanghai as soon as next month as part of a plan to more than double production capacity in China to meet growing demand for its cars in the country and export markets, two people familiar with the matter told Reuters.

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Once the new plant is fully operational, Tesla will have the capacity to produce up to 2 million cars per year at its expanded Shanghai facility, the company's main export hub, according to the people, who asked not to be identified in discussing still-private plans.

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The new plant will be located in the vicinity of its existing production base in Lingang, Pudong New Area.

Tesla declined to comment.

The expansion, if it goes ahead, would give Tesla EV-dedicated production capacity in the world's largest auto market on a par with more established brands in China.