Tesla reaches deal to build electric vehicle factory in China

TechCrunch | 7/10/2018 | Kirsten Korosec
joyy (Posted by) Level 3
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Tesla has reached a deal with the Shanghai government to build a factory capable of producing 500,000 electric vehicles a year.

The factory would be the automaker’s second assembly plant and aimed at serving the alluring Chinese market. Tesla and the Shanghai Municipal People’s Government announced Tuesday they had signed the cooperative agreement.

Tesla - Year - Shanghai - Government - Possibility

Tesla announced last year it was working with the Shanghai municipal government to explore the possibility of establishing a factory in the region. Construction on the factory, which the company has dubbed Gigafactory 3, is expected to begin “in the future after we get all the necessary approvals and permits,” a Tesla spokesman told TechCrunch in an emailed statement.

“From there, it will take roughly two years until we start producing vehicles and then another two to three years before the factory is fully ramped up to produce around 500,000 vehicles per year for Chinese customers,” the spokesman said.

Tesla - Estimate - Factory - Data - Point

Tesla hasn’t provided an estimate of what the factory might cost to build. That’s a critical data point for Tesla, which has been burning through cash as it tries to ramp up production of its Model 3 vehicle.

Still, the deal is a milestone for Tesla and Musk, who has long viewed China as a crucial market. It’s also notable because this will be a wholly...
(Excerpt) Read more at: TechCrunch
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