Tesla China is celebrating a remarkable achievement at its Shanghai Gigafactory, where the team recently produced their 5 millionth locally made electric drive unit. The milestone marks another chapter in the facility's inspiring journey toward making electric vehicles more accessible worldwide.

The accomplishment was shared with pride on Tesla's official Weibo account, where team members posed alongside the historic drive unit. This celebration reflects not just a manufacturing achievement, but the collective effort of thousands of workers dedicated to building a more sustainable future.

At the heart of this success is Tesla's innovative three-in-one integrated electric drive system, which combines the motor, gearbox, and inverter into a single compact assembly. Tesla China describes this as the powerful "heart" of their electric vehicles, and it's easy to see why. The integrated design improves energy conversion efficiency while reducing overall weight and complexity, translating into stronger performance, better handling, and longer vehicle lifespans for drivers around the world.

This latest milestone builds beautifully on previous achievements at the same facility. In July 2024, Tesla announced that its 10 millionth electric drive system globally had rolled off the Shanghai production line, making it the first self-produced Tesla component to reach that impressive volume. The factory also recently produced its 4 millionth China-made vehicle, a Model Y Long Range, and contributed to Tesla's 9 millionth electric vehicle worldwide late last year.

The Ripple Effect

The impact of Gigafactory Shanghai extends far beyond manufacturing numbers. Since construction began in January 2019, the facility has become a beacon of international cooperation and technological progress. As China's first wholly foreign-owned automotive manufacturing project, it opened doors for future innovation partnerships and demonstrated what's possible when nations work together toward common goals.

The factory's journey has been nothing short of extraordinary. Production started by the end of 2019, with Model 3 deliveries beginning in early 2020. Model Y production followed in 2021, and today the plant can produce approximately 1 million vehicles annually, providing clean transportation options to families across China and beyond.

Recent momentum has been particularly encouraging. In December 2025, Tesla China recorded wholesale sales of 97,171 vehicles, including both domestic deliveries and exports, making it the company's second-best monthly total on record. Retail sales during that month reached roughly 94,000 units, representing a heartening 13% increase year over year.

Every drive unit that rolls off the production line in Shanghai represents progress toward cleaner air, reduced carbon emissions, and a more sustainable transportation system. The facility employs thousands of workers, supports countless suppliers, and continues to prove that environmental responsibility and economic growth can go hand in hand.

As Tesla Shanghai continues breaking records and pushing boundaries, it serves as an inspiring example of what focused innovation and commitment to sustainability can achieve. The 5 million drive unit milestone isn't just about numbers. It's about the families breathing cleaner air, the workers building careers in green technology, and the planet benefiting from each electric vehicle on the road.