Tesla's Shanghai Gigafactory eyes 90 pct localization rate in 2021

U.S. car manufacturer Tesla is expected to achieve a localization rate of about 90 percent in its Shanghai Gigafactory by the end of this year, according to an official with the China (Shanghai) Pilot Free Trade Zone (FTZ).

Yuan Guohua, deputy secretary of the Party working committee of the Lin-gang special area administration of the FTZ said Tuesday that the annual output of Tesla's Shanghai factory is expected to reach 450,000 vehicles in 2021. A total of 66,100 completed vehicles would be exported by the end of the year.

Tesla's production would promote the upgrade of the complete industrial chain of new energy vehicles (NEVs) in the Lin-gang area, Yuan said.

Tesla in 2019 built its first Gigafactory outside the United States in the Lin-gang area, with a designed annual production capacity of 500,000 units.

Lin-gang will see the annual output of NEVs cross 600,000 units in 2021, when the yearly exports are expected to exceed 100,000 vehicles, Yuan said.

According to the local development plan, by 2025, the output value of the NEV industry in Lin-gang would reach about 200 billion yuan (30.86 billion U.S. dollars).