Tesla raises Shanghai plant parts localization to 98% as Chinese suppliers join global supply chain

• Over the past several years, Tesla had always described the Shanghai factory's parts localization rate as "over 95%."
• Tesla has signed up more than 400 local tier-1 suppliers in China, with over 60 of them having entered its global supply chain system.

Tesla's (NASDAQ: TSLA) Gigafactory in Shanghai has further raised its parts localization rate to 98%, showing that the US EV maker is now even more closely tied to the local supply chain at its largest production base worldwide.

Tesla disclosed the latest figure in an official press release during the ninth China International Import Expo (CIIE), which opened in Shanghai on Thursday.

Over the past several years, Tesla had consistently described the parts localization rate at Gigafactory Shanghai as "over 95%."

Beyond the increased share of parts supply, Tesla's collaboration with local Chinese partners has extended into product development. For example, comfort features such as the armrest and leg supports on the seats of the Model Y L were co-developed by Tesla and Chinese suppliers to cater to local user needs.

The model, first launched in the Chinese market, has since entered Asia-Pacific markets including Japan, South Korea, and Australia, and was launched in the US market in July this year.

Tesla has currently signed up more than 400 local tier-1 suppliers in China, with more than 60 of them having entered its global supply chain system. This year also marks the fifth anniversary of the completion of Tesla's Shanghai R&D and Innovation Center.

Gigafactory Shanghai broke ground in January 2019 and began production at the end of the same year. It is China's first wholly foreign-owned vehicle manufacturing project, with an annual production capacity of about 1 million vehicles, mainly producing the Model 3 and Model Y.

According to Tesla, about 93.3% of Gigafactory Shanghai's total floor area of roughly 730,000 square meters is used for production workshops. The plant has no lavish reception halls or executive-only dining rooms and elevators, so that more space and supporting resources can be devoted to manufacturing.

The factory currently maintains a production pace of rolling one vehicle off the line every 30-plus seconds on average, with an industrial waste utilization rate kept above 94%.

At its booth at this year's CIIE, Tesla displayed the recently launched Model Y Performance, an exploded-parts display of the Model Y shown for the first time, a humanoid robot, and the Cybercab, a driverless electric vehicle without a steering wheel or pedals.

As of the third quarter of 2026, Tesla's cumulative global vehicle deliveries had surpassed 10 million units.

Data released earlier this week by the China Passenger Car Association (CPCA) showed that Tesla China's wholesale sales in October totaled 67,829 vehicles, up 10.30% year-on-year but down 28.88% month-on-month.

According to data compiled by CnEVPost, in the first 10 months of this year, Gigafactory Shanghai's cumulative wholesale sales, including domestic deliveries and exports, reached 810,889 vehicles, up 21.42% year-on-year.