Tesla Shanghai plant rolls out 5 millionth locally produced electric drive system

  • Tesla's Shanghai factory reached the milestone of producing its 4 millionth China-made vehicle 1 month ago.
  • Tesla said its in-house developed three-in-one integrated electric drive system offers higher energy conversion efficiency, a more compact structure, and lighter weight.
Tesla's Shanghai team celebrated the rollout of its 5 millionth locally produced electric drive system.
(Tesla's Shanghai team celebrated the rollout of its 5 millionth locally produced electric drive system. Image credit: Tesla China)

Tesla (NASDAQ: TSLA) Shanghai factory today witnessed the rollout of its 5 millionth electric drive system, marking a new milestone for the US electric vehicle (EV) maker's largest global manufacturing facility.

Tesla's in-house developed three-in-one integrated electric drive system -- comprising the motor, gearbox, and inverter -- serves as the powerful "heart" of EVs, the company said in a release.

It has higher energy conversion efficiency, a more compact structure, and lighter weight, delivering energy savings, strong performance, and extended lifespan while providing vehicles with robust power and exceptional handling, Tesla said.

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On July 31, 2024, Tesla announced its 10 millionth electric drive system globally rolled off the production line at its Shanghai factory, marking the first self-produced component to reach this milestone.

Construction of Tesla's Shanghai factory commenced on January 7, 2019, and it began operations by the end of 2019, marking the first wholly foreign-owned automobile manufacturing project in China.

Giga Shanghai began delivering Model 3 vehicles to local consumers in January 2020 and started Model Y deliveries in January 2021.

The facility is Tesla's largest factory globally, with an annual production capacity of about 1 million vehicles.

Throughout 2025, Giga Shanghai delivered 851,732 vehicles, representing a 7.08% year-on-year decrease, according to data compiled by CnEVPost.

Just 1 month ago, Tesla announced on December 8, 2025, that its 4 millionth China-made vehicle rolled off the production line at its Shanghai factory. The vehicle was a Model Y L six-seat SUV.

On December 30, 2025, Tesla rolled off its 9 millionth global EV at the Shanghai factory, with the milestone vehicle being a Model Y.

In December, Tesla China's wholesale sales totaled 97,171 vehicles, including both domestic sales and exports from China to overseas markets, according to data from the China Passenger Car Association (CPCA).

This represents its second-highest monthly figure on record, trailing only November 2022's 100,291 units, according to data compiled by CnEVPost.

Its retail sales in China for December reached about 94,000 units, marking a year-on-year increase of about 13%.

BYD's full-year 2025 BEV sales reached 2,256,714 units, surpassing Tesla's 1,636,129 units for the first time.
Jan 2, 2026
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