Tesla reportedly plans to drastically increase its electric vehicle (EV) production capacity in Shanghai – the source of Australian Model 3s – to meet spiking demand across the globe.

    Reuters reports a new plant near its extant Shanghai base, which is also due for upgrades, would bring its China production capacity for domestic market sales and exports to around two million cars per year.

    In its most recent shareholder deck, Tesla said the current annual capacity for the Model 3 and Model Y in Shanghai was greater than 450,000 – meaning a colossal increase is on the cards, both in updating its existing factory and potentially making the new site.

    Tesla started production at its Shanghai plant, also known as Gigafactory 3, less than a year after breaking ground. This suggests any decision to pull the trigger on production upgrades could be actioned rapidly.

    Any increase in Shanghai production would be great news for Tesla fans in Australia – regardless of whether our cars are sourced from Giga 3 or the mooted new (or added) plant.

    The Model 3 is far and away Australia’s most popular EV, with more than 12,000 delivered last year. For context, the sales total of every other EV on sale was 5149.

    Yet it’s become a victim of its success, with the Model 3 wait list now out to as much as seven months – as we reported last week. Moreover, the Model Y crossover still hasn’t lobbed in Australia yet, despite being available elsewhere for ages.

    Mike Costello
    Mike Costello is a Senior Contributor at CarExpert.
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