Tesla exec: Shanghai factory 'key' to company's technological advancement

Positioning Tesla as an AI and robotics company more than an automobile manufacturer, a senior executive of Tesla said the company is able to make significant contributions to the production of robots with its Shanghai gigafactory "a golden key to solving the problem".

"From vehicle manufacturing to the energy sector, then robotics, I believe that Tesla's gigafactory will take on more important tasks," Allan Wang, vice-president of Tesla Inc and president of Tesla China, told media during a group interview on Tuesday.

"Tesla is not only an automobile company, but relying on our rapid technological iteration."

In 2019, Tesla built its gigafactory in Shanghai — starting operations, completing the building, and putting it into operation in the same year. Currently, the gigafactory achieves a component localization rate of over 95 percent, with an annual production capacity of over 950,000, and produces a vehicle in less than 40 seconds. One-third of the products the factory produces are exported to the Asia Pacific region and Europe.

The research and development center in Shanghai is also Tesla's first R&D center established outside the United States, with the goal of developing complete vehicles, charging equipment, and energy products — supplying not only for China, but also for the rest of the Asia Pacific market.

This March, Tesla's gigafactory exported 30,000 cars to the Asia Pacific region and Europe.

Wang highly praised Shanghai's business environment.

"The supply chain system, transportation system, production and manufacturing capabilities, strong talent accumulation, and comprehensive conditions in Shanghai enable advanced manufacturing enterprises and technology companies to root and develop in the long term," Wang said. "We have strong confidence in the business environment in Shanghai and China."