Tesla breaks ground on Shanghai plant as trade war lingers

Share
Tesla breaks ground on Shanghai plant as trade war lingers

But since Tesla announced plans for the factory on land outside Shanghai's urban core, the outlook for China's consumer market has turned worrisome.

The Shanghai-based Gigafactory should produce roughly 500,000 vehicles per year, much higher than most manufacturing plants producing from 200,000 to 300,000 units per year.

Electric carmaker Tesla's first plant outside the USA, the Gigafactory 3 in Shanghai, is about to begin construction.

Tesla unveiled its first Gigafactory in 2016, which was initially a "tent" production facility in the Nevada desert.

"This will be the most advanced Tesla gigafactory.With resources here, we are able to build this factory in record time, and we are hoping to have initial production of Tesla Model 3 toward the end of the year and volume production next year", 47-year-old Musk said.

Tesla has broken ground at Gigafactory 3 in Shanghai, China during a ceremony attended by chief executive Elon Musk. The company wants to take advantage of demand for electric vehicles in the world's biggest auto market.

In July, Tesla raised the prices of the Model 3 and the Model Y by about 20 per cent in the mainland after Beijing slapped an additional 25 per cent tariff on American-made vehicles, a retaliatory measure against the U.S. administration as trade tensions between the two countries escalated. The two sides have called a truce in their trade fight and are engaged in talks to cool tensions, with China temporarily scrapping a retaliatory 25 percent tariff on USA -made cars starting January 1.

Tesla's US-made cars are now subject to a 15 per cent tariff in the mainland after Beijing rolled back an extra 25 per cent tariff it slapped on U.S. auto imports for three months from January 1.

But the drop in the sales isn't just a direct effect of the trade war, which is why Monday's groundbreaking comes at an uncertain time.

China is the largest market for electric vehicles, and most forecasters predict EV sales in the country will accelerate rapidly as the government drives toward a goal of 100 per cent electric vehicles by 2030. He said higher-priced models will be built in the United States.

The automaker has said it aims to initially produce about 3,000 Model 3 vehicles per week at the plant and localise its manufacturing and supply chain.

"Shanghai Giga production of Model 3/Y will serve greater China region", Musk added in another one. He provided no price figures for China-made cars.

Tesla has said it plans to use mostly local debt to fund the factory.

Share

Advertisement

Related Posts

I feel bad - Bears' Parkey on missed game-winning FG
He was instrumental in leading the Bears to their first NFC North championship and playoff appearance since 2010. While Trubisky can be rah-rah when necessary, that's not what wins him points with teammates.

Jon Jones will fight Anthony Smith to defend title at UFC 235
Also on the schedule is a title defense for welterweight champion Tyron Woodley (19-3-1), who will take on Kamaru Usman (14-1). Jon Jones will fight Anthony Smith at UFC 235, assuming Jones is granted a license from the Nevada State Athletic Commission.

WTA roundup: Pliskova into Brisbane remaining
She will face former champion Karolina Pliskova or 34th ranked Donna Vekic in the final on Sunday as she bids for a fifth WTA title.

Ellen DeGeneres faces backlash!
Hart was invited to appear on DeGeneres' talk show, Ellen , where the two discussed everything that had happened with his tweets. Stand-up star Kevin Hart has posted a cryptic message about "growth" and "learning" on his Instagram account.

NHS long-term plan 'missed opportunity' to resolve social care
The Government has committed to prioritising spending on primary care through the NHS long-term plan published today (7 January).

President Trump to address the nation Tuesday night
Gutfeld said that Trump should discuss the "crux" of Democrats' arguments against a border wall, that one would be " immoral ". President Donald Trump says he will address the nation Tuesday night about what says is a "crisis" at the U.S. -Mexico border.

Hyundai's walking vehicle could save lives and even go to Mars
Inside the Elevate, passengers would experience a vehicle fully engineered to tackle the roughest terrain comfortably. This, as the automaker points out, makes the concept well suited to first responders in emergency situations.

PSG forward Timothy Weah joins Celtic
It is an awesome feeling, but I know that is not even half the work done. "My father has played at Celtic before". They wanted him to go out on loan and saw Celtic as a great possibility.

Orange Crush: Clemson topples No. 1 'Bama for national title
Prior to Monday, Alabama has never lost a game by more than 14 points since coach Nick Saban (lower right) arrived in 2007. The Tigers and Crimson Tide traded scores early in the game, with Clemson taking a 14-13 lead into the second quarter.

Real Madrid set to name Jose Mourinho manager for the second time
Vinicius was inarguably the best Real Madrid player on the pitch and had a very good evening from an overall point of view. Since the ex-Chelsea coach was dismissed at Manchester United , he has been linked with many top European clubs.

© 2015 ExpressNewsline. All Rights reserved.