Chinese state media announced Friday that Tesla (NASDAQ:TSLA) has secured land in Shanghai for a megapack battery manufacturing facility. Production is slated to commence in the fourth quarter of 2024.
The purchase involved Tesla paying 222.42 million yuan ($31.13 million) for rights to a 19.7-hectare (48.7 acres) plot, as per a government statement released Thursday. This new site is located in close proximity to Tesla's current plant, which manufactures Model 3 and Model Y vehicles.
The project aims to construct a facility capable of churning out 10,000 megapacks annually, with construction slated to kick off in the first quarter of 2024 and production scheduled for the fourth quarter, according to the official Xinhua News Agency.
In April, Tesla previously indicated plans to commence construction in the third quarter of this year, eyeing production initiation in the second quarter of the following year.
Tesla's gigafactory in Shanghai currently operates at an annual capacity of 1.1 million units. Tesla has expressed its intent to increase its electric vehicle (EV) production capability in Shanghai, necessitating regulatory approval for the expansion.
Shares of TSLA are up 0.83% in pre-market trading on Friday.