Tesla to break ground on Shanghai 'Gigafactory'

Tesla to break ground on Shanghai 'Gigafactory'

On Friday, the 4th of January, the Tesla Inc. said that they had been planning to start delivering their Model 3 cars to the customers in China from March, 2019, concreting the time-frame, which was tweeted by Tesla head, Elon Musk a year ago. Tesla built an entire general assembly line in 3 weeks when they were under pressure to increase Model 3 production.

A local Chinese plant may be crucial for Tesla, which is struggling to stave off a potential dip in demand in the USA, its biggest market, after reductions in federal tax credits for EVs.

It is clear based on information from the official Chinese website of Tesla that customers are now allowed to order Model 3s on the site. The company cut the price of all its models by US$2,000 to partially offset the loss of the subsidy.

China typically requires foreign automakers to set up joint ventures with domestic firms when establishing manufacturing plants, which entails the sharing of profits and technology with local partners.

Tesla faces rising competition from a swathe of domestic rivals in China and its sales have been hit by increased tariffs on USA imports.

In a separate post to her Instagram stories, she called Musk's lawyer a "moron" before attempting to reach out, saying: "Elon needs to just speak to me directly bc This is getting out of hand". The deadline of reduced tariff would end on March 2nd, and after that, the tariff on United States made autos on China would revert back to 40 percent, instead current 15 percent. China can build large factories in weeks. In November, they clocked 393.

Equity losses in China past year wiped out more than $2 trillion of wealth, denting consumer appetite for luxury goods. The contributor wrote that this represented the first time Tesla outsold Daimler's Mercedes-Benz in a quarter. Passenger vehicle sales declined for six consecutive months through November and are on course for an annual decline. A key China PMI index fell below 50 in December to its lowest reading since May 2017, signaling weakening demand in the $12.2 trillion economy.

How fast can Tesla and China complete Gigafactory 3? In October, it said it paid about US$140 million to secure more than 81ha of land for the planned Gigafactory 3.

Electric auto maker Tesla CEO Elon Musk on Monday said he was set to lay the foundation of a Tesla Gigafactory in China that is expected to produce 500,000 electric vehicles per year - doubling the production capacity of Tesla.

-With assistance from Dana Hull.