Tesla will add facilities at its Shanghai factory to repair and recondition parts such as electric motors and battery cells, a document submitted by the automaker to local authorities and seen by the Reuters news agency showed.

The report noted 1.3m electric and plug-in hybrid vehicles were sold in China in 2020 while regulators were starting to mandate recycling of key EV components to save materials.

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The document also said Tesla would add manufacturing capacities for car structures and electric motor controllers, Reuters said.

Tesla, now making electric Model 3 and Model Y vehicles in China, is expanding EV component capacity to localise the supply chain. It also added a factory to make EV chargers in Shanghai last year, the report noted.

Tesla did not immediately respond to a Reuters request for comment.

Tesla sold more than 35,000 locally-made vehicles last month in China and is exporting China-made cars to Europe.

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