Islamabad: Tesla China has confirmed its $202 million megafactory has begun trial production.
According to Yahoo News, the facility would begin mass production of Megapacks, the large-scale battery storage batteries it produces, in the first quarter of 2025.
Xinhua, China’s state news agency, also confirmed the US carmaker’s latest advance.
The trial production of Tesla’s Shanghai-based energy storage Megafactory signals the company’s intention to mobilise both for the Chinese market and global climate goals.
The plant will have an annual production capacity of 10,000 units 40 of gigawatt hours of energy storage and is a big piece of Tesla’s expansion in China, Yahoo News reported.
Tesla’s second major factory in Shanghai, covering 200,000 square meters, is the $201.7 million investment, encompassing an investment that reaffirms the confidence that China’s manufacturing capabilities can benefit from bilateral cooperation in the renewable energy sector.
The rapid development of the facility saw trial production in only seven months.
Why it matters
According to Benzinga, a financial media company that provides investors with news, data and tools, in the three months through the end of September, Tesla’s energy generation and storage revenue touched $2,376 million, marking a growth of 52 per cent as compared to the corresponding period of last year.
The energy business achieved a record gross margin of 30.5 per cent and the powerwall product achieved record deployments.
Tesla has another factory in China called Giga Shanghai which produces the company’s popular Model 3 sedans and Model Y SUVs.
The company began construction of the factory in January 2019 and it became operational by the end of the year.
