Tesla Giga Shanghai EV Inventory Grows at Record Rate

Recent production data indicates that the Tesla Giga factory in Shanghai is running at full capacity, significantly outpacing sales.

In October, You’re hereChina’s factory produced 87,706 Model 3/Y-model electric cars, which is probably the highest monthly result ever (we can’t say for sure).

If such a rate were maintained over 12 months, the annual production would be around 1,050,000 million, against more than 750,000 of declared manufacturing capacity. This doesn’t surprise us, as it has been reported that Giga Shanghai will be able to produce even 1.1-1.2 million per year (or 100,000 per month) after the summer factory upgrade.

However, Reuters noted that production significantly exceeds sales in recent months. In October, the gap was 16,002 units (71,704 sold locally or exported against 87,706 products). This comes on top of a gap of 9,095 in the third quarter.

Difference between Giga Shanghai production and wholesale:

  • Q3 2021: -4,174
  • 4th quarter 2021: 1,181
  • Q1 2022: -3,287
  • Q2 2022: 2,646
  • Q3 2022: 9,095
  • October: 16,002

According to the article, Tesla doesn’t have a large inventory of cars compared to established manufacturers (and their dealerships), but that could be another sign that the supply/demand ratio has changed.

We’ve already seen how Tesla’s order book dried up in Chinawhich prompted the company to lower prices for Model 3 and Model Y in China and add additional incentives to increase local sales. Export is also at an all-time high to occupy the factory.

In October, Tesla sold 2,809 Model 3s (up 566% year-over-year, from a very low base) and 14,391 Model Ys (up 8%) in China. So far this year, the Model 3 has had 102,409 local sales (down 9%), while the Model Y was around 233,910 (up 120%).

For reference, in 12 months of 2021 and 2022, Tesla sold over 138,000 and over 150,000 Model 3s, respectively. Model Y sales in 2022 were nearly 170,000. 3 are mostly stable, while the Y pattern continues to grow.