Tesla secures land in Shanghai for megapack battery facility

Tesla has finalised the acquisition of a plot in Shanghai intended for the construction of a megapack battery manufacturing facility, according to reports from Chinese state media on Friday.

The electric vehicle company secured the 19.7-hectare (48.7 acres) site near its existing Shanghai plant, which manufactures Model 3 and Model Y vehicles, for a sum of 222.42 million yuan ($31.13 million), as indicated by a government statement released on Thursday.

While Tesla has not yet commented on the development, the new facility is projected to commence production in the fourth quarter of 2024. Initial construction activities are set to commence in the first quarter of the same year, with an annual production capacity target of 10,000 megapacks, as reported by the official Xinhua News Agency.

This announcement follows Tesla's earlier communication in April, where the company initially aimed to begin construction by the third quarter of the current year, eyeing a production start in the subsequent year's second quarter.

With its existing gigafactory in Shanghai boasting an annual production capacity of 1.1 million electric vehicles, Tesla has expressed intentions to further amplify its electric vehicle manufacturing capabilities in the region. Any expansion plans would necessitate regulatory approvals.

(With Reuters inputs)