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Tesla Shanghai Gigafactory
Photo courtesy of Tesla China.


Will Tesla Gigafactory 6 Be Giga Shanghai 2?

Giga Shanghai is now producing the Tesla Model 3 and Model Y. But not all the parts that Tesla likes to produce itself are yet produced in Shanghai. Idra Group mentioned in a press release that there are now two giga presses in production. We know of two at work in Fremont. We also know that Shanghai is hard at work building a heavy foundation for a big casting shop. Shanghai is probably using castings made in Fremont.

Shanghai is lacking a battery cell factory and a factory for the Model 2 series (or whatever it will be called). Further, Tesla’s energy storage systems have a market to conquer in China and the Pacific rim. After a quiet period, when the Model Y ramp started, a new frenzy of building production halls and warehouses started in Shanghai as well. Every space between buildings is being filled up with new buildings. All the temporary buildings and facilities have been relocated to plots of land on the west and east side of the gigafactory terrain. On the most recent drone footage, it looks like the complete terrain now has a permanent destination.

When Tesla started in Shanghai, the new gigafactory looked big, very big. Now it is too small.

Lately, there have been rumors that Tesla acquired (not bought, but made a ground-rent deal, a special type of long-term lease) a parcel of land south of its current location. It is separated by a canal and a new road that is being built. The size is about half the size of the current gigafactory plot. The latest news last week was that the bidding process was stopped. Tesla was the only bidder, and they need at least three bidders to select a winner.

To get the Chinese Model 2 to market in time and to have the batteries needed, Tesla has to start building a new factory within a few months. If it is not possible to extend the current factory on extra land, Tesla must build a new factory in China. It seems that would be Gigafactory 6, aka Giga Shanghai 2.

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Written By

Grumpy old man. The best thing I did with my life was raising two kids. Only finished primary education, but when you don’t go to school, you have lots of time to read. I switched from accounting to software development and ended my career as system integrator and architect. My 2007 boss got two electric Lotus Elise cars to show policymakers the future direction of energy and transportation. And I have been looking to replace my diesel cars with electric vehicles ever since. And putting my money where my mouth is, I have bought Tesla shares. Intend to keep them until I can trade them for a Tesla car.


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