Electric vehicle giant Tesla (NASDAQ:) has picked a spot to build its new production facility in Shanghai next to its Gigafactory 3, which would make Shanghai “the world’s largest vehicle export hub.”

The new factory will be capable of producing 450,000 units annually and is expected to start making Model 3 and Model Y vehicles once Tesla completes the first stage of the plant’s construction.

The new assembly facility will be a part of Tesla’s existing Gigafactory 3 which started production in late 2019. After the Post’s February report that Tesla plans to build another production line in Shanghai, it is now known that this will more than double its China-based capacity.

Tesla’s Gigafactory 3 saw the production of 484,130 Model 3/Model Y vehicles in 2017. This is 51.7% of its worldwide total of 936,000 vehicles. It delivered 321,000 Model 3 by China and Model Y vehicles in 2018, a 17% increase on 2020.

The carmaker’s existing production line in Shanghai is capable of producing more than 1,000 in a single shift.

By Senad Karaahmetovic