Construction of a new project at Tesla's Shanghai Gigafactory was completed on March 9 and is expected to give the Model 3 a significant boost in production capacity, the Beijing News said, citing an environmental assessment report.

According to previous plans, Tesla's Shanghai Gigafactory project (Phase I) will be completed in two stages, with the first stage completed in September 2019 with a planned annual capacity of 150,000 Model 3s.

The second stage was divided into two phases, A and B. Phase A started on Feb. 1 and was completed on March 9, taking only 37 days. This phase was commissioned from March 10 to March 30, with an expected project acceptance period of March 10 to March 30.

By increasing the number of workers, extending production hours, and increasing equipment start-ups, Phase A boosted Model 3 production capacity from 150,000 units. However, Tesla did not disclose the increased number.

The completion and start of commissioning of the Phase A project means Tesla's Model 3 production capacity at the Shanghai Gigafactory will begin to ramp up, the report said.

Phase B is an expansion of the completed pilot facility to create two complete production lines.

According to Tesla's fourth-quarter earnings report, the company plans to boost production capacity at the Shanghai Gigafactory to 450,000 units this year.

Shanghai will soon offer a plot of land near Tesla's Shanghai Gigafactory, thought to be in preparation for Tesla's expansion.

Tesla's revenue in China reached $6.66 billion last year, up 123.6 percent year-on-year. Tesla sold 18,318 electric vehicles in China in February this year, second only to SAIC-GM-Wuling.

(Source: Unsplash)