Tesla Gets Government Approval To Start Building Cars In China

Tesla has been granted approval to start local production of its vehicles at Gigafactory 3 in Shanghai.

Confirmation came on Thursday, when Tesla was added to a government list of approved automotive manufacturers from the Ministry of Industry and Information Technology, Reuters reports. With this approval, the automaker can start local production the moment it’s ready.

Earlier this month it was reported that Tesla could commence operations at its Chinese facility before the end of October, although an official start date has yet to be announced.

Also Read: Tesla Wants To Be Building 1,000 Model 3s Weekly In China By The End Of 2019

Tesla wants to be building at least 1,000 examples of the Model 3 each week by the end of this year in its pursuit to increase sales in China, the world’s largest car market. Building cars locally will also allow it to avoid high import tariffs that are imposed on U.S.-imported vehicles. The factory is the first in the country to be fully-owned by a foreign company and not established through a joint venture, and earlier this month, Tesla was also granted a 10 per cent tax exemption that could lower its prices by almost $14,000.

The electric car manufacturer is thought to have spent roughly $2 billion in constructing the Gigafactory 3. Alongside the Model 3, the site will also build battery packs and initially have an annual production capacity of 250,000 vehicles. A second phase of construction will increase this to 500,000 units and also accommodate local production of the Model Y compact SUV.


  • carlbolt

    China saves Tesla.

    • HD

      Saves? The Model 3 is the best electric car in the world by a huge margin. It’s the most sold car period in the Netherlands and Norway.

      • EyalN

        The Model 3 is the best electric car in the world by a huge margin because other car companies make profit selling cars, Tesla losing money selling cars.
        Musk signed a deal with the communist party of China that the chinse are sure that Musk will break the deal and the chinse will take over the company
        500,000 cars? In how many years?

        • jason wu

          It sounds like you are smarter than Musk. Should I call you the Irony Man?

    • Bo Hanan

      So true.

  • designer_dick

    I honestly wouldn’t be the slightest bit surprised if Teslas manufactured in China turn out to be better quality than those made in the US.


  • man

    Good news is that a Chinese Model S clone will be available for a 10th of the price on Amazon.

  • Nick099

    “Approval” to build in China means Tesla is now partnered with the Chinese government as they must own a controlling interest in the Chinese Giga factory. This is part of the cause of trade tensions with the US and China.

    All companies wishing to manufacture in China must be partnered with a Chinese company—and that company is Communist controlled. Hence theft of technology, etc.

    • Mehdi Cheddadi

      “The factory is the first in the country to be fully-owned by a foreign company and not established through a joint venture” so this is not true?

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