Tesla Raises Shanghai Parts Localization Rate to 98%

Tesla, Inc. announced on November 6, 2026, that the parts localization rate at Gigafactory Shanghai has reached 98%. The company had previously described the rate at its largest production base worldwide as more than 95%. Tesla disclosed the updated figure in an official release during the ninth China International Import Expo in Shanghai.

Tesla works with more than 400 local tier-1 suppliers in China, and more than 60 of them have entered its global supply chain. Its cooperation with Chinese suppliers also covers product development. The armrest and leg supports in the Model Y L, for example, were jointly developed to address local user requirements. The model was first launched in China before entering Japan, South Korea and Australia, followed by the US market in July this year.

Gigafactory Shanghai broke ground in January 2019 and began production at the end of that year. The facility mainly manufactures the Model 3 and Model Y and has annual production capacity of about 1 million vehicles. According to Tesla, production workshops account for about 93.3% of the factory’s approximately 730,000 square meters of floor area.

The plant currently produces one vehicle every 30-plus seconds on average and maintains an industrial waste utilization rate above 94%. This year also marks the fifth anniversary of the completion of Tesla’s Shanghai R&D and Innovation Center.

China Passenger Car Association data showed that Tesla China recorded wholesale sales of 67,829 vehicles in October, an increase of 10.30% year over year and a decrease of 28.88% month over month. During the first 10 months of this year, Gigafactory Shanghai’s domestic deliveries and exports totaled 810,889 vehicles, up 21.42% year over year. Tesla’s cumulative global vehicle deliveries had surpassed 10 million units as of the third quarter of 2026.

Source: CnEVPost