Tesla Giga Shanghai caps exports as China focuses on local market

Tesla China is poised to focus its vehicle production on the domestic market, with recent drone overflights at Shanghai’s southern port terminal showing the electric vehicle maker exporting what appears to be one last batch of cars. Considering the date of the overflights, it seems that Giga Shanghai’s exports for the third quarter are capped.

Tesla China usually allocates the first half of each quarter to exports, so in the first two months or so cars from the factory are sent overseas. Giga Shanghai’s export volume this quarter has been extremely impressive, with multiple fleets consisting of thousands of Teslas seen at the Shanghai South Port Terminal since the start of the third quarter.

As noted by the drone operator Wu-Wa, which has been tracking the progress of Giga Shanghai since its inception, several transport ships have been spotted in recent days charging Teslas from the port. In true Giga Shanghai fashion, vehicle loading was accomplished efficiently, and on Monday the drone operator noted that the port had already been virtually emptied of Teslas.

This suggests that Tesla China is now focusing on domestic vehicle orders. This bodes well for local EV buyers, as Giga Shanghai just underwent upgrades to its production line this quarter. With the upgrades in place, it is expected that Giga Shanghai will be able to produce around 3,000 vehicles per day. That’s enough to push Tesla China into another potential record month in September.

Giga Shanghai is currently the electric vehicle maker’s main export hub, supplying both Model 3s and Model Ys to regions such as Europe and Asia. By taking on this role, however, Giga Shanghai cannot focus on the Chinese automotive market until the end of the quarter. Fortunately, this system will likely change in the future, especially as Tesla builds another production facility near Giga Shanghai that could pave the way for an operating rate of one million vehicles per year or more.

Tesla China recently passed important milestones. Earlier this month alone, the electric vehicle maker’s China division proudly announced that Giga Shanghai had produced its millionth electric car. This is a significant milestone for a facility that only started delivering consumer vehicles at the end of 2019.

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Tesla Giga Shanghai caps exports as production shifts to domestic market