Musk Praises China’s Manufacturing, Shanghai Tesla Factory
Musk attributed the facility’s performance to the skills, commitment and production efficiency of its Chinese employees during an interview, according to reports.
“The quality is excellent, and the efficiency is excellent,” Musk said. “In terms of the Shanghai factory, it’s a gem. It’s beautiful.”
The Shanghai Gigafactory started operations in 2019 and has since produced more than 4.5 million vehicles, representing more than 45% of Tesla’s total global production, according to reports.
Tesla currently runs two major production sites in China, both located in Shanghai. The Gigafactory manufactures Model 3 and Model Y vehicles, while the company’s Megafactory focuses on producing Megapack energy-storage batteries.
The Shanghai facility recorded wholesale sales, including vehicles shipped abroad, of roughly 852,000 units in 2025. Retail sales within China reached nearly 626,000 vehicles during the same year.
China continued to rank as Tesla’s second-largest market after the US in 2025. The company reported $20.96 billion in revenue from China for the year, broadly matching the $20.94 billion recorded a year earlier, according to reports.
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