Tesla’s Shanghai Plant Achieves Milestone: 1 Millionth Model Y Rolls Off the Assembly Line

Tesla‘s Shanghai Factory Reaches Milestone: 1 Millionth Model Y Produced

Tesla (NASDAQ: TSLA) achieved a significant milestone as its Shanghai factory celebrated the production of its 1 millionth Model Y, solidifying its position as the largest Tesla factory globally.

Various local automotive media outlets reported on this achievement, sharing an image capturing the moment with workers at Tesla’s Shanghai factory gathered around a red Model Y. While Tesla has not officially shared this development on its social media channels, the milestone has garnered attention.

The Shanghai factory, which commenced construction on January 7, 2019, and began operations by the end of the same year, holds the distinction of being the first wholly foreign-owned automotive manufacturing project in China.

Since January 2020, Giga Shanghai has been delivering Model 3 sedans and later expanded to include Model Y crossovers from January 2021, catering to the local Chinese market.

Remarkably, the factory reached the one-millionth vehicle production mark on August 13, 2022, within just three years of commencing production.

With a current capacity exceeding 1 million vehicles per year, the Shanghai factory not only supplies vehicles to Chinese customers but also serves as an export hub for Tesla.

In the second quarter of this year, Tesla achieved record-breaking global deliveries, with 466,140 vehicles delivered, representing an 83.02 percent year-on-year increase and a 10.23 percent increase from the first quarter.

CnEVPost’s tracking data reveals that Tesla sold 247,217 China-made vehicles in the second quarter, accounting for 53 percent of global deliveries.

In China, where consumer preferences lean towards spacious crossovers, the locally-produced Model Y has gained significant popularity and surpassed the Model 3 in sales since its introduction in January 2021. It has become one of China’s best-selling SUVs.

In May, the Model Y topped the ranking as the best-selling SUV in the country, with 31,054 units sold at retail, surpassing the second-place BYD Yuan Plus at 26,072 units and the third-place BYD Song Plus at 22,079 units, according to the China Passenger Car Association (CPCA).

From January to May, Model Y retail sales in China reached 152,461 units, marking an impressive 87.03 percent year-on-year growth, securing its position as the best-selling SUV during that period.

In June, Tesla sold a total of 93,680 China-made vehicles, including 19,468 exported units and 74,212 delivered domestically, according to data released by the CPCA on July 10. A detailed breakdown of Model 3 and Model Y deliveries in China is not yet available.

Reuters reported on March 1 that Tesla was retooling its Shanghai assembly plant for a revamped version of the Model 3, codenamed “Highland” by Tesla, with production expected to begin in September.

Furthermore, the report mentioned that Tesla was preparing production modifications for the Model Y, known internally as “Project Juniper.” These changes will involve enhancements to the SUV’s exterior and interior, with production targeted to commence in 2024.

On July 7, local media outlet Jiemian reported that Tesla’s Shanghai factory was close to completing the production line tuning for the updated Model 3, with prototypes being tested on the factory’s roads during weekends.