Tesla Inc. is set to break ground on its first gigafactory outside the U.S.
“Looking forward to breaking ground on the @Tesla Shanghai Gigafactory today!” Chief Executive Elon Musk tweeted Monday, Shanghai time.
“Aiming to finish initial construction this summer, start Model 3 production end of year & reach high volume production next year,” Musk said in a follow-up tweet.
bought the land for the factory outside Shanghai in October for $140 million. Tesla has said it intends to produce up to 500,000 cars a year at the 210-acre facility within a decade. Shanghai’s government has said limited production at the plant could begin by the second half of 2019, CNBC reported last month.
“Shanghai Giga production of Model 3/Y will serve greater China region,” Musk tweeted Sunday. The China gigafactory could significantly reduce costs — from transpacific transit and tariffs — for Tesla in a booming local market for electric cars. China is the world’s largest market for autos, and wants 7 million electric or hybrid cars sold a year by 2025, according to Bloomberg News.
Tesla’s first gigafactory opened outside Reno, Nev., in 2016. A second gigafactory in Buffalo, N.Y., started producing photovoltaic modules in 2017. It also plans to build a gigafactory in Europe, possibly in Germany.
Tesla shares have been on a roller-coaster ride over the past 12 months, and are up 0.4% over that time, compared with the S&P 500’s
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