Local media outlets say that Tesla’s 2022 auto production made up 25% of total automotive production in Shanghai.
According to Chinese local media reports, Tesla Inc (NASDAQ:TSLA) cars accounted for nearly a quarter of all auto production in Shanghai last year. The US EV automaker’s 25% automotive production value in 2022 underscores its increased production output momentum in China.
Last year, Tesla generated auto production value of 183.9 billion yuan ($26.4 billion) in Shanghai. According to the Shanghai Municipal Commission of Economy and Information Official, this figure was 23% of the city’s total motor vehicle manufacturing output. Furthermore, more than 50% of Tesla’s global deliveries last year were produced at its Shanghai facility. Reports say the plant, which rolled out its first Tesla EV in 2019, can now produce 1.1 million cars annually.
The Shanghai government official also said that the output value generated by the China factory added 1.3 percentage points to total industrial output in 2022. According to Chen Banana, Tesla’s push to localize parts procurement has created 100,000 supply jobs. In addition, the US EV maker’s operations have also brought 60 Chinese parts makers into its global supply chain.
Chen further explained that local authorities will continue to cooperate with Tesla to drive AI initiatives in Shanghai. The development marks a marked shift in the Chinese city’s disposition toward Tesla’s autonomous driving and robotic modules. Tesla vehicles were earlier banned from Chinese military complexes and some government facilities in 2021. At the time, officials expressed concerns that cameras attached to EVs collect sensitive data.
Tesla Shanghai auto production news comes after company hikes EV prices in China
Earlier in the month, Tesla raised prices Its Model S and X cars have gone up by about $3,000 in China. After first reducing its product prices, the company opted to increase in order to remain competitive.
On Tesla’s first quarter earnings call, the CEO Elon Musk The company said that the company aims to increase the sales volume as compared to the higher margin. Furthermore, Musk said he expected Tesla to “make significant profits through autonomy” over time. The outspoken business executive explained at the time:
“We have taken the view that pushing for higher volumes and larger fleets is the right choice compared to lower volumes and higher margins. However, we expect that over time our vehicles will be able to generate significant profits through autonomy. Will be
Kasturi also added:
“We believe we are laying the groundwork here, and then it is better to ship a large number of cars at a lower margin and harvest that margin later in the future because we have full autonomy. This is an extremely important point .
Musk Resigns as Twitter CEO to Former NBCU President Linda Yacarino
In other recent developments, Tesla shares saw a slight increase Musk is set to leave his CEO position at Twitter. The Tesla chief had previously intended to vacate the position before the search for a new CEO began. With the new Twitter CEO Linda Yacarino set to resume office About six weeks in, Tesla investors appear pleased that Musk is getting his priorities right. The outgoing Twitter CEO will instead take on the role of executive chairman and CTO at the bought microblogging platform in October 2022.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to strip crypto stories down to the basics so that anyone anywhere can understand without a lot of background knowledge. When he is not delving deep into crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
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