Tesla’s Shanghai Gigafactory To Build Up To 500,000 Vehicles Annually

Tesla has signed an agreement with authorities in Shanghai, China to build a production factory in the city with an annual capacity of 500,000 vehicles.

The facility, officially dubbed Gigafactory 3, will be located in Lingang, near Shanghai’s free-trade zone.

This will be the first wholly foreign owned plant of its kind in China and could be the largest overseas investment in Shanghai’s manufacturing sector, potentially surpassing the $5.5 billion Walt Disney invested in the Shanghai Disney Resort.

The Memorandum of Understanding signed by Tesla confirms that the Gigafactory 3 will incorporate research and development, manufacturing and sales functions, South China Morning Post reports.

Chinese financial magazine Caijing reports that construction on the factory will start early next year.

Fresh off his visit to the caves in Thailand where a group of young boys were stuck, Elon Musk, who managed to get mini-subs to be built in no time, although they weren’t used for the rescue after all, flew to China to attend the signing.

In the past, Musk has criticized China’s auto rules that require foreign car manufacturers to form a 50-50 joint venture with a local company before building vehicles in the country. Shortly afterwards, China announced plans to scrap these rules for new-energy vehicle ventures by 2022 and Tesla registered a new electric car company in Shanghai to get the wheels in motion.

The announcement of this factory comes just a couple days after Tesla increased its prices in China by 20 per cent due to tariffs implemented by the local government in retaliation for additional tariffs placed on its products by the United States.

The prices of Tesla vehicles in the Chinese market will, thus, fall significantly when the Shanghai plant becomes operational.

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  • Spyder Hole Fantome

    Tesla, so flush with huge cash reserves these days. Tesla.

  • Thunderbolt

    Say bye bye to your intellectual property Tesla. Once the Chinese improves on the tech, they will create their own version and Tesla will be absolute. Make a penny now, lose a billion later.

  • Spyder Hole Fantome

    So are all the Tesla Fannyboiz still standing behind their favorite American EV manufacturer?

  • Mr. EP9

    Pffftt…..yeah right. If this Shanghai factory is to produce 500k models annually they’ll have to make just a little over 9600 models a week just to hit it. Tesla struggled just to hit 5000 models a week which required their employees working 12 hour shifts and calling in extra hands just to do so. I don’t believe this claim for a second.

    • Spyder Hole Fantome

      Dont forget all the tents… They needed lots of tents.

  • I WONDER IF CHINA WILL DROP THE TARIFFS GIVEN THE INVESTMENT TESLA IS MAKING.

    • Mr. EP9

      Unlikely. Tesla had to increase the price of their cars because of it.

  • jaykit
    • Spyder Hole Fantome

      It’s called PRETEND and EXTEND… until, you know, all the cards come tumbling down.

    • Headache in a suitcase

      WOW! This really puts things into perspective.

  • Headache in a suitcase

    I do wonder how many will move exported production to a region where tariffs will be a moot point, and the US loses even more job because of it. #backfire

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