Tesla Boosts Q4 Production at Shanghai Gigafactory to Meet Rising Demand

Tesla (TSLA, Financials) has started ramping up production at its Shanghai gigafactory for the fourth quarter, Vice President Tao Lin said Monday in a post on Weibo.

The facility Teslas largest manufacturing hub worldwide is increasing output after the automaker saw an improvement in China-made vehicle sales last month. September deliveries of locally built cars rose 2.8% from a year earlier, ending a two-month decline in the Chinese market.

The modest rebound follows the start of deliveries for Teslas new six-seater vehicle in China, which helped lift showroom traffic and domestic demand. The company continues to rely heavily on its Shanghai plant to supply both Chinese buyers and export markets across Asia and Europe.

The production ramp comes as Tesla works to stabilize global output and strengthen margins after several months of uneven sales in key markets. Investors will be watching the companys third-quarter earnings later this month for updates on production targets and new model timelines.