Wednesday January 29, 2020
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Elon Musk Lays Foundation of First Ever Tesla Plant in China

Tesla has also cut its US prices by $2,000 as the federal tax credit granted to its buyers gradually gets reduced and phased out

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Tesla CEO Elon musk, board
Tesla CEO Elon Musk. (VOA)

As the US-China trade talks began, electric car maker Tesla CEO Elon Musk on Monday laid the foundation of a Tesla Gigafactory in Shanghai — the first-ever outside the US — that is expected to produce 500,000 electric vehicles per year and double the production capacity of Tesla.

Musk attended the ground-breaking ceremony of Tesla Gigafactory with Shanghai Mayor Ying Yong.

“Aiming to finish initial construction this summer, start Model 3 production end of year & reach high volume production next year,” Musk tweeted earlier in the day, adding that “Shanghai Giga production of Model 3/Y will serve greater China region”.

“Shanghai Giga will produce affordable versions of 3/Y for greater China. All Model S/X & higher cost versions of Model 3/Y will still be built in US for WW market, incl China,” he further tweeted.

According to reports, the Tesla Gigafactory is the biggest foreign investment in Shanghai.

Tesla’s first Gigafactory in Nevada produces Model 3’s drive units and battery packs. The Shanghai Gigafactory is set to be equipped with production lines for both batteries and electric cars.

According to a report in teslarati.com, by producing its lower-end Model 3 and Model Y in Shanghai, Tesla would be able to price the vehicles very competitively in the country — regardless of the presence of a trade war between the US and China.

Elon Musk, spacex
Elon Musk. IANS

Bullish on his Chinese dream, Musk last July said he aims to invest long-term in the country and signed a preliminary agreement with the Shanghai government to build a Tesla Gigafactory.

Musk had earlier said that China’s progress in advanced infrastructure is “more than 100 times faster than the US”.

According to a CNN report on Monday, Tesla is forging ahead in China “at a tricky time for both the company and the country”.

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“China’s slowing economy and its trade war with the United States have hit the auto industry hard, with companies including General Motors (GM), Ford, Jaguar Land Rover and Volkswagen all reporting a slide in sales recently”.

“Tesla’s own prices in China have fluctuated wildly, with the company slashing prices several times last year even after China increased tariffs on imported US vehicles,” the report added.

Tesla has also cut its US prices by $2,000 as the federal tax credit granted to its buyers gradually gets reduced and phased out. (IANS)

Next Story

Tesla CEO Elon Musk Allays Environmental Fears on Tesla’s Plant in Germany

The Berlin unit will manufacture SUV Model Y, which could go into production by 2021. The unit could initially employ 3,000 people. The headcount could rise to 7,000

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Tesla logo
A Tesla logo is seen in Los Angeles, California. VOA

Tesla CEO Elon Musk has responded to environmental concerns including excessive water use for building the massive ‘Gigafactory 4’ near Berlin to produce electric cars for the European market, saying that such concerns were baseless.

The leading non-profit organization BUND (Friends of the Earth Germany) met Tesla officials last week to discuss possible environmental pollution from the planned Gigafactory.

“Sounds like we need to clear up a few things! Tesla won’t use this much net water on a daily basis. It’s possibly a rare peak usage case, but not an everyday event,” tweeted Musk.

“Also, this is not a natural forest a” it was planted for use as cardboard & only a small part will be used for GF4,” he added.

Tesla CEO Elon musk, board
Tesla CEO Elon Musk. (VOA)

The site where the Gigafactory will be built has invited protests over concerns that the facility will excessively use water and cause deforestation by destroying 300 hectares of forest.

“Giga Berlin will build sustainable energy vehicles using sustainable energy, so net environmental impact will be extremely positive!” Musk said.

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After Shanghai in China, Musk selected Berlin as Tesla’s next gigafactory outside the US where the company is planning to invest 4 billion euros ($4.4 billion) and produce 150,000 cars a year.

The Berlin unit will manufacture SUV Model Y, which could go into production by 2021. The unit could initially employ 3,000 people. The headcount could rise to 7,000. (IANS)