China sources say reports that Tesla's second factory in China will be located in Shenyang's Dadong District are false.

(Image credit: CnEVPost)

An article posted over the weekend on Liaoning's official WeChat account sparked speculation that Tesla might build a new factory in the provincial capital city of Shenyang. Now, however, Tesla has made a denial.

Sina Tech cited a source from Tesla China as saying that reports that Tesla's second factory in China will be located in Dandong District of Shenyang are false.

An article posted on Saturday by Liaoning's official WeChat account said that Dandong District in Shenyang will seize the opportunity of the development of new energy vehicles (NEVs) and intelligent network-connected vehicles to build a complete auto full industry chain ecosystem.

The district will promote the renewal of urban construction to provide more space for local industrial development and "lay the groundwork for major new energy vehicle (NEV) projects, including Tesla's."

These sparked a large number of Chinese media reports that Tesla will build a second factory in Shenyang.

The WeChat article has now been removed.

Last November, there were rumors that Tesla would build its second Gigafactory in China in Qingdao, a city in eastern China's Shandong province, but that was also denied.

Tesla's Shanghai plant had a capacity of 450,000 units last year and will see a huge increase after April this year, local media Cailian reported earlier this month, citing people familiar with the matter.

After the latest expansion project is completed, Giga Shanghai's annual production capacity is expected to top 1 million units in the next few years, the person familiar with the matter said.