Tesla Starts Building Shanghai Factory for Megapack Battery

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Tesla’s battery factory now under construction in Shanghai is expected to begin mass production in the first quarter of 2025. Photo: Fang Zhe/Xinhua News Agency

Tesla Inc. broke ground on its new battery factory in Shanghai on Thursday, underscoring the U.S. automaker’s deepening investment in China amid intense competition.

The plant, which will manufacture its Megapack energy storage batteries, is the company’s first such facility outside the U.S., Tesla said in a statement on social media the same day. The plant adds to its assembly plant for electric vehicles (EVs) in Shanghai.

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Tesla Inc. has started building a new battery factory in Shanghai, its first outside the U.S., focusing on Megapack energy storage batteries.
The factory aims to start mass production by early 2025, with an annual capacity of 10,000 Megapack units.
Despite Tesla's efforts, including CEO Elon Musk’s recent visits, the company faces steep competition in China and saw a 18% drop in April vehicle shipments year-on-year.

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Who’s Who

Tesla Inc.: Tesla Inc. recently broke ground on a new battery factory in Shanghai to manufacture Megapack energy storage batteries, its first outside the U.S. The factory aims for mass production by Q1 2025, with a capacity of 10,000 units annually. The move comes as Tesla faces stiff competition in China and aims to boost its market share. CEO Elon Musk has also been in talks with Chinese officials regarding the rollout of Tesla's Full Self-Driving system.

BYD Co. Ltd.: BYD Co. Ltd. is a domestic electric vehicle (EV) manufacturer in China. Tesla has been losing market share to BYD in the competitive Chinese EV market. The company is one of Tesla's key rivals in the region.

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