On May 4, according to foreign media reports, Tesla is planning to double the capacity of the Shanghai plant by building a new plant, so as to build it into Tesla's largest automobile export center in the world. It is reported that Tesla mentioned in a thank-you letter sent to the Lingang New Area of China (Shanghai) pilot free trade zone that it plans to build another new factory near the current park of Shanghai factory to expand production capacity. The new plant is expected to produce model 3 and model y models with an annual capacity of 450000 vehicles. After the expansion of the new plant is completed, it will help Tesla to increase the total capacity of the Shanghai plant to 1 million vehicles per year. According to the data, Tesla's Shanghai plant delivered about 484100 vehicles (including exports) in 2021, accounting for 51.7% of Tesla's cumulative global delivery in 2021. As of press time, Tesla has not responded to the reporter of the daily economic news on this matter. According to the China Securities News, multiple sources cross verified that Tesla has made it clear that it plans to build another new factory near the current port super factory of the Shanghai factory. A few months ago, during the field visit to Tesla super factory, the reporter also learned that a large area of land located about 200 meters near the current Tesla factory has been included in the possible new factory planning in the future. 10 cities participate in the competition for Tesla's "second plant" Since Tesla said it would build a second super factory in China, there have been rumors about the project in many cities. Just two weeks ago, on April 24, according to the information disclosed at the Zhuhai Industrial Development Conference, it has recently focused on the docking of new energy vehicle manufacturing projects. Tesla, BYD, Xiaopeng automobile and premium vehicles have been preliminarily discussed to explore the possibility of cooperation, and actively promote the high-quality projects under discussion, such as BYD electronics, Xinwei communication, Laibao high tech, Sinoma lithium film and Keheng Co., Ltd. Photo source: photographed by reporter Huang Xinlei (data picture) The industry believes that the above news also releases the signal that Zhuhai wants to participate in the competition for Tesla super factory project. Prior to this, 9 cities including Shenyang, Guangzhou, Shenzhen, Qingdao, Yibin, Chongqing, Hefei, Wuhan and Xi'an had "gossip" with Tesla China's second factory project. "For Tesla, whether the local industrial chain is complete or not is the primary consideration for its location. Because reducing costs and maximizing benefits are the pursuit of all enterprises, including Tesla." On April 25, Cui Dongshu, Secretary General of the national passenger car market information joint committee, said in an interview with reporters that even if the local government can give the greatest policy support, if there is no complete industrial chain, the enterprise production will fall into passivity and virtually increase the production cost. Since the Shanghai Super factory was put into operation, Tesla's production capacity and market scale in China have increased rapidly. According to public data, Tesla Shanghai Super factory delivered 484100 vehicles in 2021, a year-on-year increase of 235%, accounting for 51.7% of Tesla's total annual global delivery. In the first quarter of this year, Tesla delivered more than 310000 new cars, a year-on-year increase of 68%. Tesla China's wholesale sales from January to March this year totaled about 182200 vehicles, accounting for 59% of Tesla's total sales. This means that nearly 60% of Tesla's global sales come from the Chinese market. Source: Daily Economic News At the Tesla earnings conference call held in January this year, Tesla CEO musk publicly said that the company is selecting a site for the new plant, and relevant information may be released by the end of this year. In the view of the outside world, Tesla chose to build the second plant in China by learning from the experience brought by Shanghai Super factory, that is, the closer it is to the local market, the more beneficial it is to production. At the same time, localized production is more conducive to its cost control. "When choosing a factory to settle in a city, the main consideration is whether the supporting facilities of the local industrial chain are perfect, whether the market demand is strong, and the strength of supporting policies such as land and tax given by the local government." In February this year, Shi Jianhua, Deputy Secretary General of China Automobile Industry Association, said in a telephone interview with reporters. Tian yongqiu, an auto industry analyst, said in a telephone interview with reporters that the introduction of good enterprises will drive the local government to settle in a number of supporting enterprises in the relevant industrial chain. The gradual improvement of supporting enterprises in relevant industrial chains will also attract more enterprises and talents to enter and improve the local employment rate, so as to form a positive circular effect and boost the rapid development of local economy. Source: visual China In Tian yongqiu's view, Tesla China's second plant site selection will mainly consider three factors: first, the convenience of geographical location to evaluate whether it is convenient for its export and sales; Second, whether the local industrial chain supporting facilities are perfect; Third, whether the preferential policies and conditions given by the local government are enough to attract. Tesla's net profit increased by 255% in the first quarter On April 20, local time, Tesla released its first quarter earnings after US stocks closed. Despite the impact of the COVID-19 and the supply chain crisis, Tesla's revenue and net profit still significantly exceeded market expectations and continued to reach a record high. Specifically, Tesla's revenue in the first quarter was $18.756 billion, a year-on-year increase of 81%, higher than analysts' expectation of $17.92 billion; In the first quarter, the net profit under non GAAP was US $3.736 billion, a year-on-year increase of 255%, and the earnings per share (EPS) was US $3.22, a year-on-year increase of 246%, higher than the US $2.27 expected by analysts. In addition, it is worth noting that Tesla earned $679 million by selling carbon emission quotas in the first quarter, an increase of more than 116% over the previous quarter, leading its new energy vehicle competitors. The bright performance pushed Tesla's share price up 7.8% after hours and 5.28% as of press time. Since this year, affected by supply chain factors, Tesla's share price has fallen by 7.5%, but it is still better than auto giants such as general motors and Ford, which have fallen by 29% and 23% respectively. Tesla attributed its performance in the first quarter to the growth of delivery volume and the increase of average sales price. Tesla delivered about 310000 vehicles in the first quarter, a year-on-year increase of 68%, slightly higher than 309000 vehicles in the fourth quarter. However, Tesla warned that the global supply chain bottleneck led to a shortage of chips and other key parts, which will continue to affect Tesla's production capacity. "With the supply chain becoming the main limiting factor, our plant has been operating below production capacity for several consecutive quarters, which may continue for the rest of 2022." Tesla said in a letter to shareholders. Despite the uncertainty in the supply chain, with the opening of Tesla's new factories in Berlin, Germany and Austin, the United States in late March and early April, musk said on a conference call that Tesla had reason to achieve a 60% delivery growth rate this year. Adam Jonas, an analyst at Morgan Stanley, expects Tesla to deliver 1.46 million vehicles in fiscal 2022, an increase of 56% over 2021. In addition, Tesla also said that it is developing a customized Robo taxi self driving taxi, which will not be equipped with a steering wheel or a foot pedal. Tesla hopes to achieve mass production of Robo taxi in 2024, which will become a "huge driving force" for Tesla's growth. (Xinhua News Agency)