A new drone video shows that the Tesla Shanghai Gigafactory looks set to double in size as Tesla promises to produce the Model Y in China.

The automaker built a Gigafactory in Shanghai and within a year started producing Model 3 electric cars there, but that was just the beginning.

The Shanghai Gigafactory currently produces Model 3 cars, but still only produces slightly more than 30% of its parts locally, and still relies heavily on other production plants for other parts.

The automaker is expected to expand its Shanghai Gigafactory to vertically integrate production, allowing a larger percentage of the components in the Chinese-built Model 3 to be produced locally.

In addition, Tesla will produce the Model Y at the Gigafactory in Shanghai as soon as next year.

Amid the rapidly changing landscape and economy caused by the new coronavirus pandemic, Tesla has made it clear that they will not slow down their investment in new capacity, especially when it comes to Model Y.

Tesla CEO Elon Musk said in a conference call last week:

"We are absolutely continuing our Model Y capacity expansion at full speed at both Giga Berlin and Giga Shanghai and here in Fremont when they will let us continue."

Over the past few months, several drone videos have shown that Tesla's Shanghai Gigafactory is expanding the facility that is being prepared for the production of the Model Y as well as new battery modules and packs.

Now, a new drone video shows just how big the new building is now.

As the drone video shows, Tesla's Shanghai Gigafactory, in addition to a huge new building that looks almost as big as the first phase of the Shanghai Gigafactory, has several other large buildings that are relatively small but still under construction.

These new buildings are expected to make it possible for Tesla to manufacture battery modules and electric motors in Shanghai.

Tesla's Shanghai Gigafactory is now capable of producing 3,000 Model 3 vehicles per week, and in its first quarter earnings report, Tesla announced that it would increase production to 4,000 vehicles per week in the next few months.

"Our Shanghai Gigafactory expansion is on track. With better than expected progress, we believe the Model 3 will achieve a production rate of approximately 4,000 units per week (or approximately 200,000 units per year) by mid-2020. So far, we've been able to secure parts to keep the plant operating properly."

Production of the Tesla Model Y is expected to begin next year, but the exact timeline is not yet known.