Tesla's Shanghai Factory Raises Parts Localization Rate to 98%

Editor by Aya From Gasgoo
BrandsTesla
Main productsAluminum die castings and forgings

Gasgoo Munich- Tesla showcased its latest innovations at the ninth China International Import Expo. The automaker revealed that localized parts now account for 98% of its Shanghai Gigafactory supply.

Roughly 93.3% of the Shanghai plant's floor space is dedicated to workshops. There are no lavish reception halls, executive dining rooms, or private elevators — the focus, instead, is on channeling space and resources directly into production.

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Image source: Tesla

Tesla's ties with Chinese partners now run deeper than parts supply, extending into product development. Comfort features on the Model Y L's seats — including armrests and leg rests — were co-developed with local suppliers.

At the expo, the recently launched Model Y Performance shared the stage with an exploded-view display of the Model Y. The pairing gave visitors a deep dive into the vehicle's body structure, battery system, and critical components — underscoring the engineering rigor and reliability baked into the design.

As of the third quarter of 2026, Tesla's cumulative global deliveries have topped 10 million units, with more than 480,000 cars delivered in each of the past two quarters.

Data from the China Passenger Car Association shows Tesla's China-made EV sales picked up pace in October. Deliveries of Shanghai-built Model 3 and Model Y vehicles — including exports to Europe, the Asia-Pacific region, and Canada — climbed to 67,829 units, a 10.3% annual jump. That compares to a 5% gain in September, marking the 12th straight month of year-on-year growth.

TeslaAutomakerCompany Insights
Location: USA/Texas
BrandsTesla
GlobalSupplier
Location: Philippines/Metro Manila
Main productsAluminum die castings and forgings

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