Tesla’s Shanghai Deliveries Surge 35% as AI Chip Delays Hit DeepX
Tesla's Shanghai deliveries jumped over 35% year-on-year in January-February as factory output climbs. CEO Elon Musk says robotics-driven productivity gains will allow headcount to rise even as Tesla's custom AI chip rollout faces delays impacting software partner DeepX.
1. China EV Sales Surge
In January and February of 2026, Tesla delivered 35% more China-made electric vehicles from its Shanghai factory compared to the same period last year, driven by ramped-up production capacity and improved supply chain efficiency.
2. AI Chip Rollout Delays Impact DeepX
Tesla's in-house AI chip program has slipped by six months, postponing software partner DeepX's NPU deployment and potentially delaying advanced driver-assistance system enhancements reliant on the custom processing unit.
3. Workforce Expansion Plans
Elon Musk stated that advances in robotics and AI will boost productivity enough to justify increasing Tesla's human workforce, signaling continued investment in labor despite automation efficiencies.