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Tesla acquires land in Shanghai

Tesla has signed an agreement to secure land in Shanghai’s Lingang area for its first factory outside the United States.
Tesla reportedly singed the papers with Shanghai Lingang Area Development Administration and Lingang Group back In July to set up a wholly-owned factory in Shanghai – which would be the city’s largest foreign-invested manufacturing project with its USD 140.5 million, a press release from the Shanghai Municipal Government reads.

Securing the site is an important milestone for what will be the company’s “next advanced, sustainably developed manufacturing site,” Robin Ren, Tesla’s vice president of worldwide sales, says in the release. “Tesla’s mission is to accelerate the world’s transition to sustainable energy not only through all-electric vehicles, but also scalable clean energy generation and storage products.”

The electric carmaker is taking cues from the lessons learned in the US as it sets up and constructs its new Tesla Shanghai Gigafactory 3.

The location, Lingang in the Pudong New Area is an industrial cluster of companies in the automotive industry. According to the release there are more than 20 carmakers and auto part makers currently in the area.

The first batch of electric vehicles are set roll off the production line within three years. The factory will initially have an annual capacity of around 250’000 vehicles and battery packs – this number will eventually increase to 500’000 vehicles.

“The government will fully support the construction of Tesla’s factory, and create a better business environment and provide better services for all types of enterprises, including Tesla,” Shanghai Mayor Ying Yong says in the release.

According to the agreement signed in July, Tesla and Shanghai will focus on jointly promoting electric vehicle technology innovation and industry development. Tesla (Shanghai) Co and Tesla (Shanghai) Electric Vehicle Research and Development Innovation Center were both inaugurated in July, the release continues.

The research and development center will mainly focus on innovation, research and development of electric cars and work to transform the technology and innovation into actual results.

Tesla currently imports all the cars it sells in China from the US. A factory in China will cut Tesla’s shipping and tariff costs while also meeting demand in one of the world’s largest auto market.
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January 17 2019 2:20 pm V11.11.0-1