Tesla Inc is opening a factory in Shanghai, capable of producing ten thousand Megapack energy products per year, to supplement output of the Megapack factory in California. Production will start in the second quarter of 2024.
The new factory will initially produce 10,000 Megapack units a year, equal to around 40 gigawatt hours of energy storage. Chinese battery giant CATL (300750.SZ) has also been deepening its collaborations with clients including Tesla in energy storage battery supplies.
Tesla plans to expand the Gigafactory Shanghai, to add an annual capacity of 450,000 units. The U.S. company, however, had grappled with rising inventory in Shanghai as demand started weakening in the third quarter, leading to aggressive price cuts in its major markets globally in January.