Currently reading: Work begins at Tesla's Shanghai Gigafactory
CEO Elon Musk attends groundbreaking ceremony at site of new Model 3 production facility in China
Felix Page Autocar writer
2 mins read
7 January 2019

Construction has started on Tesla's $2 billion facility in Shanghai, China, where it plans to commence production of the Model 3 electric car by the end of 2019. 

At a ceremony attended by local and government authorities, the American company's CEO, Elon Musk, stated that the new facility should be operating at capacity by 2020.

Bloomberg reports that the factory will be capable of producing 500,000 vehicles per year, which would double Tesla's targeted production. Musk also aims for 500,000 vehicles per year from its Fremont plant in California, US.

The new plant is the first foreign-owned car factory in China. It will help Tesla to mitigate the effects of the ongoing US-China trade war by eliminating the impact of rising export costs. 

In order to strengthen the electric vehicle maker's position in a crowded Chinese automotive market, a new company, Tesla (Shanghai) Co Ltd, was set up with 100 million yuan (around £11.6 million). It 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. 

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 older Model S and Model X

European Gigafactory will be Tesla's fourth, although it appears to be some way off.

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

Read more:

Tesla Model 3 review

Tesla to build European Gigafactory

Tesla Model Y production planned to begin in November 2019


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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.

7 January 2019
xxxx wrote:

Autocar normally only gives us bad news about Tesla.

No they dont, youre deluded.

8 January 2019
typos1 wrote:

xxxx wrote:

Autocar normally only gives us bad news about Tesla.

No they dont, youre deluded.

Nope, back in May when I made the comment Autocar hardly wrote about anything other than production problems, share price and cash flows etc.

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 labour cheaper there?

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


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