Tesla in for further setback after losing EV crown to BYD, as some production is suspended to upgrade Shanghai assembly line
- Giga Shanghai is expected to see about a 30 per cent jump in output following the upgrades
- Temporary production halt will give Chinese EV firms an opportunity to increase their market share, analyst says
The facility is expected to see about a 30 per cent jump in output following the upgrades and will be able to churn out 22,000 units a week starting in August.
Giga Shanghai delivered 484,130 vehicles in 2021, representing 51.7 per cent of Tesla’s global total last year. The carmaker is expected to report a sharp fall in production and delivery of its bestselling Model 3 and Model Y EVs this month.
“A temporary production halt at Gigafactory 3 will give Chinese smart EV builders an opportunity to increase their market share,” said Eric Han, senior manager at business advisory firm Suolei in Shanghai.
Shenzhen-based BYD, which is backed by Warren Buffett’s Berkshire Hathaway, has already stolen a march on Tesla. It sold more EVs between January and June this year to emerge as the largest electric cars manufacturer worldwide, a first for a Chinese firm.