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.