Tesla will expand its parts production capacity in Shanghai, after many rumors about the second factory were exposed
1. Tesla will expand its spare parts production capacity in Shanghai. Tesla released the EIA report of the first phase of Tesla super factory project (phase I) – parts production process improvement project (capacity adjustment) on February 22. Tesla said that in order to meet the export demand of enterprises, it plans to increase the production capacity of parts by increasing production workshops, increasing the number of workers and improving the equipment operation rate. On February 24, Sina Technology reported that a person familiar with the matter said that Tesla would build a new factory as soon as next month, and the annual production capacity of Shanghai would reach up to 2 million vehicles after completion, but then the financial Associated Press refuted the rumor that Tesla insiders denied this information.
2. There are frequent rumors about Tesla’s second factory in China on the Internet. In February 12th, Liaoning issued an official account of the public, which included the expression “laying the foundation for the landing of the Tesla vehicle project”. But it was denied by Tesla that Liaoning issued the relevant content. In addition, Qingdao, Guangzhou, Yibin, Xi’an, Chongqing, Sanya and other places also heard rumors about the Tesla factory landing.
Tesla fully benefits from China’s supply chain and market, and actively expanding China’s production capacity is in the interests of the company
1. Shanghai Super factory has excellent benefits and plays an exemplary role. Tesla mentioned in its Q4 and full year report in 2021 that Shanghai Super factory has played a core role in reducing single vehicle costs and enhancing the stability of the global supply chain, and will continue to serve as a global export port. 1) The landing progress is fast. Tesla Shanghai Super factory took less than 10 months from the foundation laying on January 7, 2019 to the completion and operation on October 23, 2019, and the landing progress was significantly faster than that of the Berlin plant in Germany (it was started in November 2019 and has not been put into operation yet); 2) China’s supply chain can be fully utilized. In terms of localization rate, according to the global times, by the end of 2021, the localization rate of parts in Tesla Shanghai Super factory has reached 80% +. Tesla has fully benefited from China’s three power supply chain, including lithium battery and electric drive system, as well as supporting suppliers in the field of heavy assets such as body, interior decoration and chassis.
2. The Chinese market is Tesla’s main incremental market. Tesla sold 320700 vehicles in the Chinese market in 2021, a year-on-year increase of + 133%. The Chinese market contributed 42.1% of the year-on-year increment of Tesla’s sales in 2021. Building production capacity in China can save a lot of logistics fees and customs fees.
Investment suggestions: 1. Tesla China’s industrial chain is expected to benefit from capacity expansion. It is suggested to pay attention to: Ningbo Tuopu Group Co.Ltd(601689) , Ningbo Xusheng Auto Technology Co.Ltd(603305) , Zhejiang Sanhua Intelligent Controls Co.Ltd(002050) , Shanghai Baolong Automotive Corporation(603197) , etc. 2. It is recommended to pay attention to Saic Motor Corporation Limited(600104) , Chongqing Changan Automobile Company Limited(000625) , Byd Company Limited(002594) , Great Wall Motor Company Limited(601633) . 3. Suppliers of automotive electronic related parts are expected to realize domestic substitution and increase in price and volume in the acceleration of the industry. It is suggested to pay attention to: Bethel Automotive Safety Systems Co.Ltd(603596) (EPB + brake by wire), Keboda Technology Co.Ltd(603786) (light control), Changzhou Xingyu Automotive Lighting Systems Co.Ltd(601799) (intelligent lamp), Huizhou Desay Sv Automotive Co.Ltd(002920) (Intelligent cabin system), Anhui Zhongding Sealing Parts Co.Ltd(000887) (air suspension), etc.
Risk tip: the mitigation progress of core shortage in the automotive industry is less than expected, the recovery of industry demand is less than expected, the process of automotive intelligent industry is less than expected, and the development of new energy vehicle industry is less than expected.
