Tesla Inc Plans To Expand Its Shanghai Plant

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Tesla Inc Plans To Expand Its Shanghai Plant

Tesla Inc Plans To Expand Its Shanghai Plant

Tesla (TSLA) has reportedly applied for an expansion of its Shanghai-based plant. In addition, the company also has plans to start the production of battery cells (pouch-type).

The expansion of the Shanghai plant is based on regulatory clearance, and once that happens, the actual process will start.

According to sources, the expansion of the plant will allow Tesla to produce up to 1.75 M powertrain units per year. For now, the company can only produce 1.25 million units per year.

Another thing that's not clear is whether the company will start the expansion right away or if this approval is to prepare for the future.

Tesla Plans To Produce Pouch Battery Cells

In addition, the electric car manufacturer is also planning to produce battery cells (pouch type). In the start, the company will produce cells of 20K amp-hours. This is similar to the battery pack used by the Model Y car.

As for how these pouch cells will be used, Tesla has yet to make it public. For now, all we know is that these types of cells were used in any electric vehicle produced by Tesla.

Normally, puch sells are commonly used in consumer-type electronic devices and can be housed in flexible packaging. That's why their use is common among different automakers such as General Motors.

Another development that's worth noting is that Tesla is also planning to build new recycling facilities. This will allow the company to remove chemicals from the wastewater.

Currently, the Tesla plant based in Shanghai is one of the largest ever owned by the company and has produced 726000 cars last year.

In short, it appears that Tesla is planning to step-up its production which means the company is anticipating more sales of its electric vehicles in the near future. And this directly means more revenue for the company that would serve as the basis for more upside in the company's stock.

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