Tesla is gearing up for the highly anticipated Project Highland update for the Model 3, with expectations of a surge in orders. Recent reports from insiders in China suggest that Tesla is taking proactive measures to ensure a smooth production ramp-up. In this article, we explore Tesla's plans to resume operations at Giga Shanghai's Phase 1 battery plant and its implications for meeting the demand for the revamped Model 3.

Project Highland: The Next Evolution

According to sources familiar with the matter, Chinese publication 36 Krypton reported that deliveries for the Model 3 Project Highland are expected to commence in late September. This update promises significant enhancements to the Model 3, driving considerable interest and anticipation among potential buyers.

Production Resumes at Giga Shanghai Phase 1

Tesla China's proactive response to the expected high demand involves the resumption of production at Giga Shanghai's Phase 1 battery plant. This decision marks a shift from earlier reports in July when Tesla China reportedly laid off workers assigned to Giga Shanghai's Phase 1 battery assembly facility. At that time, some employees were offered the opportunity to transfer to different areas within the complex.

The Need to Meet Growing Demand

The surge in demand for the Model 3's Project Highland update is a key driver behind Tesla's decision to reopen operations at Giga Shanghai's Phase 1 battery facility. As one source from 36Kr stated, "Now demand is up, so Phase 1 is ready to reopen again." This strategic move aims to ensure that Tesla can meet the expected influx of orders and smoothly ramp up production.

Inside Giga Shanghai's Battery Facilities

Giga Shanghai boasts three battery facilities: Phase 1, Phase 2, and Phase 2.2. Phase 1, the smallest and oldest of the three, is less automated. In contrast, Phase 2 serves as Giga Shanghai's primary battery facility, while Phase 2.2, the newest addition, was constructed just over half a year ago.

In terms of production capacity, Giga Shanghai's Phase 1 battery plant can produce approximately 3,000 to 4,000 battery packs per week, whereas both Phase 2 and Phase 2.2 can each produce 10,000 packs per week. When operating at full capacity, Giga Shanghai's battery facilities could collectively produce around 100,000 battery packs per month.

Meeting the Project Highland Challenge

With growing indications that consumers are eagerly awaiting the Model 3's Project Highland update, Tesla's decision to reopen Phase 1's battery plant appears well-founded. This proactive approach aligns with Tesla's commitment to meeting customer demand for innovative electric vehicles and underscores the company's readiness to adapt to market dynamics.


As Tesla prepares to launch the Model 3's Project Highland update, the resumption of operations at Giga Shanghai's Phase 1 battery plant signals the company's dedication to meeting heightened demand. This strategic move positions Tesla to respond effectively to market trends and customer preferences, ensuring a seamless rollout of the highly anticipated Model 3 update.