Tesla will build a new factory at its site in Shanghai, with plans to nearly double its output to almost one million vehicles annually.

Tesla confirmed the new factory in a letter thanking local government authorities for their help in reopening the Shanghai factory, which was shut down for three weeks following a COVID-19 outbreak in the Chinese city.

In the letter, uncovered by Reuters, Tesla said the new plant will add 450,000 vehicles to its production capacity, making it “the world’s largest vehicle export hub”.

News of the additional production facility is promising for Australian electric vehicle buyers, with right-hand-drive Tesla models being manufactured at the site after production was moved from the US.

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The Shanghai factory delivered 484,100 cars last year, with the new plant expected to bolster that number to more than 900,000 per annum.

The 2023 Tesla Model Y is expected to go on sale in Australia any day now – six months after some customers were originally told to expect initial deliveries – after the company briefly tested its online configurator last month.

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