Tesla Motors, Inc. (NASDAQ: TSLA) – Tesla has announced it will invest up to $ 188 million to increase capacity at Giga Shanghai

Tesla Inc (NASDAQ: TSLA) will spend up to $ 188 million to increase capacity at Giga Shanghai and hire another 4,000 employees early next year, cnEVpost reported Wednesday, citing a report from the company.

What happened: The Elon muskThe company-run electric vehicle company would start work to “optimize” Giga Shanghai’s production line in December and finish it in April next year.

The project includes the expansion of the stamping shop, body shop, paint shop, final assembly shop and logistics operations center.

The ramp-up will bring the total number of Tesla employees to 15,000 when the project is completed, according to the report.

The electric vehicle maker has not disclosed the actual capacity increase, but it aims to partially achieve the ramp-up with more hours of work and number of employees in addition to the frequency of rotation of materials. .

See also: Tesla analyst says it could take half of $ 5,000 billion EV market, raises price target

Why is this important: Giga Shanghai started operations in 2019 and currently manufactures Model 3 and Model Y vehicles. It is divided into a vehicle production area, a pilot area, a parts production area and a common workshop serving as a repair workshop.

Tesla had, in its second quarter results, revealed that it had successfully transferred its “export hub” from Fremont Factory and established the Shanghai gigafactory as its main export hub.

The Shanghai manufacturing plant was originally intended to meet local demand.

Building a locally made Tesla in China is a key step for Tesla, as it also relies on the world’s largest auto market for its future growth.

See also: Tesla team in China receives praise from Elon Musk as Giga Shanghai says it has started mass production of the Model Y

Tesla analyst Daniel Ives of Wedbush Securities said last week that he expected China to account for 40% of Tesla’s shipments in 2022.

Price action: Tesla stock closed 0.63% higher at $ 1,116 on Wednesday.

Photo: Courtesy of Tesla

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