Tesla Is Reportedly Tendering for Contracts of 2nd Gigafactory in Shanghai

There are unconfirmed rumors in China that Tesla is building a second gigafactory in China. This is in addition to a strong possibility that Tesla has already started certain processed to build a Gigafactory in Quebec Canada. But now we are hearing rumors of a second Gigafactory in China. In this report I am going to tell you everything I know abut it, some of which is confirmed, while the rest is not.

It probably wasn't quite enough for a record in sales of electric cars from the Tesla Gigafactory in China in August - according to estimates by the CPCA association, they reached around 77,000 Model 3 and Model Y and thus slightly less than the previous high of this June. According to a report, however, production in China was around 82,500 electric cars, which would be a clear record. At the same time, the construction of another Tesla factory there seems to be becoming more concrete. I am about to tell you regarding the ongoing confirmed and unconfirmed information that we have about the second possible Tesla Gigafactory in China. But first, let me tell you some recent information so you may come to the same conclusion of why Tesla needs a second factory in China. And it looks like the location of Tesla’s second Gigafactory in China is going to be between the current Giga Shanghai factory and the Luchao port, which Tesla uses for its car exports.

According to unconfirmed but also uncontradicted reports, parts of the Chinese Gigafactory were out of operation throughout July and the first week of August because Tesla was converting them for a higher capacity. The new goal reported was 22,000 electric cars per week, 8,000 Model 3 and 14,000 Model Y, for a total of close to 100,000 per month. With 82,500 Model 3 and Model Y in August, at least 90,000 would be practically reached, considering that the first week of the Model 3 was probably omitted.

The Australian Publication The Driven recently reported that Tesla is set to have record production at its Shanghai Gigafactory in August with an expected production of around 82,500 EVs for the month. Production is expected to see an increase of 192% month-over-month in August when compared with July.

If these numbers are correct, it would be the first time Tesla has produced over 80,000 EVs in a month from a single production facility. Last week's semi-official August sales figures pointed in this direction, but just missed a record.

Extrapolated with the still unconfirmed value of The Driven, this would already result in a Tesla annual capacity of almost 1.1 million electric cars from its Giga Shanghai factory. But since May it has looked as if that's not all: According to the news agency Reuters, Tesla has confirmed to the authorities that a second China gigafactory is to be built near the first. And according to rumors, the tenders for the construction work on it have now started.

Rumor: Tendering for contracts of 2nd Tesla Shanghai factory is ongoing.— Kelvin Yang (@KelvinYang7) September 4, 2022

For a while, there has been speculation about the location of Tesla’s second car factory in China with changing candidates. Recently, it was noticed that Tesla is apparently heaping up a parking space with earth on the edge of the existing Giga Shanghai factory, but it looks like there isn’t enough room for a whole new production building there. At the end of July, a drone filmmaker pointed to an area between the Gigafactory and the Luchao port in Shanghai, which Tesla uses for many exports: He saw dredging and ground work from the air and he heard on the ground according to its own account that Tesla is behind it. Whether Tesla’s second gigafactory in China will actually be in this location has been open ever since. But on Sunday, observer @KelvinYang7 independently reported rumors that Tesla is currently placing orders to build a second Gigafactory in China.

“Rumor: Tendering for contracts of 2nd Tesla Shanghai factory is ongoing,” Yang wrote on his Twitter. His latest tweet 16 hours ago suggests that there are competing locations for Tesla's second Gigafactory in China and one of them will win.

These rumors and conversations about a second Tesla Gigafactory in China emerged in part from a report by Reuters, which had already reported on Tesla’s new building plans in February. At that time, there was talk of a planned Tesla capacity in two Chinese factories totaling 2 million electric vehicles per year. In a letter to the authorities in Shanghai, the company is said to have thanked them for their intensive support in restarting Giga Shanghai’s operations. And according to Reuters, Tesla confirmed that another factory with an annual capacity of 450,000 electric cars will be built nearby.

The company will build a new plant on nearby land in the same area, which is poised to add an annual capacity of 450,000 cars, including Model 3s and Model Ys, becoming "the world's largest vehicle export hub", the letter said.

Do you think Tesla will announce the start of construction of two new gigafactories this year? Do you those those will be in Quebec, Canada and a second gigafactory in Shanghai? Please, let us know your thoughts in the comments section below.

Armen Hareyan is the founder and the Editor in Chief of Torque News. He founded TorqueNews.com in 2010, which since then has been publishing expert news and analysis about the automotive industry. He can be reached at Torque News Twitter, Facebok, Linkedin and Youtube.