Tesla Gigafactory Shanghai is laying off workers. The Tesla China layoffs specifically affect workers in Giga Shanghai’s electric vehicle (EV) battery assembly line.
The reason behind the layoffs and the number of Tesla Giga Shanghai it affects is still unclear. People familiar with the matter told Bloomberg that Tesla China already started notifying some employees about the layoffs earlier this week. A few employees have been given the option to transfer to a different workshop in Giga Shanghai, like the paint shop, general assembly line, or stamping.
Gigafactory Shanghai’s battery line assembles modules and packs from LG Energy Solution Ltd. or Contemporary Amperex Technology Co. Ltd. (CATL) cells. The battery modules and packs are used in Tesla China-made vehicles which are transported to various countries across the globe.
As of this writing, Tesla’s Shanghai factory is estimated to have about 20,000 employees. The Shanghai facility can manufacture around 1 million electric vehicles annually.
Tesla China had plans to increase Giga Shanghai’s production capacity by 450,000 units by developing 172 acres of land near the factory’s site.
However, local authorities were concerned about overcapacity during the EV price war, preventing Giga Shanghai’s expansion plans. Tesla recently signed a truce with 16 other Chinese Automakers, ending the EV price war.
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