Elon Musk said Tesla's Shanghai Gigafactory now makes more cars than its Fremont, California, plant

• Tesla's Shanghai Gigafactory now makes more cars than its Fremont factory, Elon Musk said Thursday.
• Tesla has had a rocky year in China.

Tesla's Shanghai Gigafactory is now producing more cars than its factory in Fremont, California, CEO Elon Musk said during the company's annual shareholders' meeting on Thursday.

Musk did not say exactly how many vehicles Tesla's Shanghai factory was making, but he said the factory was "the best quality, lowest cost and also low drama."

"That said, we are continuing to expand our Fremont operations and expect to hopefully increase Fremont output by 50%," Musk added.

Complimentary Tech Event

Transform talent with learning that works

Capability development is critical for businesses who want to push the envelope of innovation.Discover how business leaders are strategizing around building talent capabilities and empowering employee transformation.Know More

Tesla's China sales fell by 27% in April of this year from March after the electric vehicle maker became a target for the Chinese government and state media.

In June, the company recalled more than 285,000 vehicles in China after a regulator said drivers could switch on its Autopilot feature by accident.

In August, Bloomberg reported Tesla's domestic China shipments fell by 69% from June to July this year, but exports from the Shanghai factory increased almost fivefold to 24,347 vehicles.

Musk said at a virtual conference in September that Tesla would continue to expand R&D investment in China, CNBC reported.

Tesla is currently building factories in Berlin, Germany, and Austin, Texas. Musk announced during Thursday's meeting that the company was set to move its headquarters to Austin.

Tesla's Berlin factory was due to open on July 1, but its opening date was indefinitely postponed after permit delays and opposition from local activists.