Tesla's Shanghai Gigafactory (GF3) celebrated a significant milestone by rolling off its 2 millionth electric vehicle on Wednesday. The achievement is remarkable, as it took just 13 months to reach the second million units after reaching the first million in 33 months. In total, the GF3 produced 2 million units in less than four years.
The construction of the GF3 began in January 2019, and with the support of the Chinese government's "Tesla Speed" initiative, production commenced later the same year, with the first batch of Model 3 units coming off the production line on December 30th. The factory achieved its first million units in August 2022.
Notably, the GF3 has become Tesla's export hub, with over half of the 889,000 Tesla models produced in the first half of the year originating from the plant located in Shanghai's Lingang Free Trade Zone (FTZ). These EVs are exported to various regions, including the Asia Pacific, Europe, and North America. The factory has achieved a remarkable level of localization in its supply chain, reaching 95%, and a vast majority of its employees are local Chinese staff.
The GF3 underwent a series of upgrades starting in July of the previous year in preparation for the refreshed Model 3, which was unveiled on September 1st. This new Model 3 is expected to further boost Tesla's sales in China. Recent reports suggest that the factory is capable of producing one unit in just 40 seconds.
Tesla's Shanghai Gigafactory is the company's first overseas factory, occupying an 860,000 square meter site and consisting of four main areas: production, testing, component production, and connected buildings. It manufactures both Model 3 and Model Y vehicles, with the latter starting production in January 2021 and reaching its own milestone of 1 million units produced in July.