Tesla’s next Gigafactory looks set to be built in Shanghai, with a European plant to follow; Shanghai's government has confirmed that initial agreements have been made

Tesla is expected to soon make the announcement its next Gigafactory in Shanghai, China, after the Shanghai government announced that an initial agreement has been made.

Bloomberg reports that the factory will have a 500,000 vehicle per year capacity, which would double the brand's targeted production. Musk also aims for 500,000 vehicles per year from its Fremont plant in California. 

Previous reports uncovered that a new business licence has been approved for a company registered by Tesla’s set-up in Hong Kong. The new Chinese company will be located in Shanghai’s free trade zone, suggesting that this 47-square-mile area will become home to Gigafactory 3. 

The new company, Tesla (Shanghai) Co Ltd, was set up with 100 million yuan (around £11.6 million), and will focus on “technical development; technical services; technical consultation; technology transfer in the field of electric vehicles, spare parts, batteries, and energy storage equipment; electric car display; and product promotion,” according to Sina Finance. 

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Tesla boss Elon Musk has already said that the next Gigafactory will be in China, although the official announcement from the company isn’t expected until the third quarter of this year. 

Musk previously announced that the company's smaller models - the troubled Model 3 saloon and upcoming Model Y SUV - will be made at the plant, but not the Model S and Model X

European Gigafactory will be the company’s fourth, although it appears to be some way off.

Tesla's well-documented production troubles with the Model 3 have led to heavy investment in the company’s first Gigafactory to quell ‘production bottlenecks’ and reach delivery targets for the entry-level model. 

Read more:

Tesla reports record losses - but boss Musk insists it is close to profitability

Tesla to build European Gigafactory

Tesla Model Y production planned to begin in November 2019

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Comments
9

15 May 2018

Autocar normally only gives us bad news about Tesla. ohh just read the last line about ‘production bottlenecks’.

Shame they forgot to mention most bottlenecks are now fixed and production estimates are around 3000+ a week, oh and when will Autocar test a Model 3, even TopGear have done a glowing review now.

typos1 - Just can’t respect opinion

15 May 2018
To me it seems Tesla is investing wisely rather than what the fossil fuel losers call burning cash. It is a relatively new company that is undergoing phenomenal expansion hence the heavy spending. Look at its achievements. Tesla effect has caused the world's largest polluting car makers to invest billions in electrification.

10 July 2018

Spot on

15 May 2018

Not Tesla, green legislation, don't give credit where it is not due.

10 July 2018

What are you on?

Tesla have accelerated electrification way beyond what would have happened without  it's existance

Credit to musk and his team.

The government have never wanted to rock the boat- any of them

10 July 2018

It would be nice to see our government lobby Tesla to open a gigafactory in the UK 

Surely there would be no problems with opening up a state of the art factory here with our lovely workers and unbiggoted altitudes. 

Wait, shite, what am I talking about?

Just woke up from a nice dream.

Ah well.

10 July 2018

 Ok, I’m going to say it....is labour cheaper there?

Peter Cavellini.

10 July 2018

Probably, but the work force is also very skilled, hence why iphones and ipads are made there,

plus I suspect Musk knows a good thing when he sees it : China is going to be the largest market in the coming years for electric transport and he wants to be a big chunk of it.

By the way, as I do a great deal of my work in the far east, dont mistake the fact that they are cheaper makes them somehow inferior, they are not in any way and tend to be far better educated than some of the morons we seem to be producing over here.

Shame, but true

11 July 2018

It's also a massive market full stop. Which is why Volvo, etc ALL have factories there!

typos1 - Just can’t respect opinion

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Our Verdict

Tesla Model 3 2018 road test review hero front

Lowest-priced, largest-volume Tesla yet has wooed and wowed the buying public in the US. Should UK buyers join the queue for a Model 3?

Find an Autocar car review

Driven this week