Tesla rolled its 9 millionth electric vehicle off the assembly line on 30th December 2025, a milestone achieved at its Shanghai Gigafactory, underscoring China’s indispensable role in the U.S. automaker’s global manufacturing footprint.
The vehicle, a Model Y, marks a significant production achievement for the company as it faces intensifying competition from domestic rivals in the world’s largest auto market.
Tesla’s Dependency on the Shanghai Gigafactory
The Shanghai plant, which broke ground six years ago, has become Tesla’s primary export hub and production engine. According to company data released Tuesday, the facility now accounts for nearly half of Tesla’s global deliveries.
This global milestone follows closely on the heels of a local one. On Dec. 8, the Shanghai factory produced its 4 millionth vehicle. The company noted that the jump from 3 million to 4 million China-made units took less than 14 months, highlighting a production speed that legacy automakers have struggled to match.
Tesla said the Shanghai facility now operates with a localisation rate of over 95%, sourcing the vast majority of its components, from batteries to raw materials, from domestic Chinese suppliers. This tightly integrated supply chain allows a finished vehicle to roll off the line approximately every 30 seconds, a cycle time that sets a high benchmark for industrial efficiency in the EV sector.
Despite a bruising price war initiated by domestic heavyweights like BYD and fresh entrants such as Xiaomi, Tesla remains a dominant force in China. Data from the China Passenger Car Association (CPCA) showed Tesla China delivered 86,700 vehicles in November, a 10% increase from a year earlier and a 40% jump from October.
Our Take
A 30-second takt time is blistering. For comparison, many legacy OEMs struggle to get below 60 seconds on mixed-model EV lines. This speed is the direct result of that 95% localization rate. Tesla isn’t waiting on parts containers from Germany or Japan; the entire ecosystem is likely within a 200-mile radius of the Yangtze River Delta.
While Tesla builds factories in Texas and Berlin, Shanghai still bears the brunt. It is the cash cow and the volume leader. If you cut off Shanghai, you effectively cut Tesla in half.
