Tesla Motors's Shanghai factory is expected to produce 300,000 cars in the first nine months of the year, Reuters reports, citing unidentified sources.
What Happened: According to the report, the plant has seen a delivery rush at the end of the July-September quarter despite the global semiconductor shortage.
Around 240,000 vehicles were shipped from the factory in the first eight months.
Reuters quoted an official in the area saying the factory is expected to produce 450,000 vehicles this year, including 66,100 for export.
The Shanghai unit makes the electric Model 3 sedans and Model Y sport-utility vehicles for domestic and international markets, including Germany and Japan.
The factory is mass-producing Model Y vehicles for deliveries in China and overseas markets, including the rest of Asia, Europe, and Australia.
In August, Tesla temporarily stalled operations of a production line at its Giga Shanghai for four days due to a lack of key chips.
In July, Tesla's CEO Elon Muskclarified that the company focuses on exports in the first half of the quarter, and the focus shifts to vehicles meant for domestic sales in the second half.
Why It Matters:Tesla has been facing setbacks in China over this year. It has seen protests by users in China over quality issues with its vehicles.
The Chinese government barred the company's vehicles from sensitive locations for fear of the camera installed in the vehicles being used for spying.
Due to a software glitch, the company was forced to recall almost all of its domestically sold vehicles in China to resolve the problem.
Tesla's Chinese sales plummeted in April before recovering in May. Nevertheless, the June numbers vouch for the company's stronghold on the market.
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