Tesla has reached a significant milestone, exporting its one millionth vehicle from its Gigafactory in Shanghai. This achievement marks a rapid ascent for the American electric vehicle giant, which began exporting from the factory just four years ago.
Tesla announced the milestone on Saturday, sharing a picture on its official X account of several cars arranged to form the words “1M” beside a port. “Exported the 1 millionth car from Giga Shanghai,” the post read, expressing gratitude to Tesla owners and supporters.
The Shanghai Gigafactory is a vital production hub for Tesla. It manufactures the company’s more affordable models, the Model 3 and Model Y, for both the Chinese market and export to regions like Europe. The factory boasts an impressive annual vehicle capacity of over 950,000 units.
Tesla’s sales in China are demonstrating strong momentum. In August, the company sold 86,697 China-made EVs, including both exports and domestic sales, according to the China Passenger Car Association (CPCA). This represents a 17% increase from July and a 3% year-on-year growth.
However, Tesla faces stiff competition in the Chinese market. BYD, a leading Chinese electric vehicle manufacturer, sold 148,470 battery electric passenger vehicles in August, alongside 222,384 plug-in hybrid passenger vehicles.
Tesla is also looking to further solidify its presence in China by expanding its product line. The company is reportedly planning to produce a six-seat version of its Model Y SUV starting next year in China.
Tesla CEO Elon Musk has previously highlighted the importance of the Shanghai factory. Earlier this month, he stated that the factory is operating at “max capacity.”
The European Commission is currently considering imposing tariffs of up to 35.3% on electric vehicles manufactured in China, including Teslas, in addition to the standard 10% car import duty applied by the EU. This potential tariff could impact Tesla’s European sales and underscores the complexities of the global EV market.
Despite the challenges, Tesla remains committed to its growth in China. The company expressed its long-term confidence in the Chinese market, stating in its second-quarter earnings report that its cost structure and focus on key features like autonomy position it well for the future.
The achievement of exporting one million vehicles from its Shanghai Gigafactory is a testament to Tesla’s successful strategy in the Chinese market. It reflects the company’s rapid expansion and its commitment to manufacturing and selling electric vehicles globally.
