Construction on the U.S. electric vehicle maker’s first Chinese factory has officially begun, reports Reuters. Located in Shanghai, the Gigafactory will localize production of affordable versions of the Tesla Model 3 and the Model Y for Chinese customers.
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.
— Elon Musk (@elonmusk) January 7, 2019
The Shanghai Gigafactory is significant not just because it’s Tesla’s first fully owned factory in China, but because it is the first wholly foreign-owned car plant of any overseas car manufacturer in China. Producing Teslas inside the country will allow Tesla to keep costs lower for Chinese customers by skirting the tariffs the Chinese government has placed on foreign-made cars thanks to Trump’s trade war.
Tesla CEO @elonmusk with Shanghai Mayor Ying Yong at Tesla Shanghai Gigafactory ground breaking ceremony. $TSLA #Tesla #China #TeslaChina #GF3 pic.twitter.com/sIecnGsU71
— vincentyu.eth (@vincent13031925) January 7, 2019
Elon Musk says the company is aiming to have the construction of the $2 billion factory finished this summer with the initial production models rolling off the lines by the end of the year before volume production ramps up in 2020. “We think with the resources here we can build the Shanghai Gigafactory in record time and we’re looking forward to hopefully having some initial production of the Model 3 towards the end of this year and achieving volume production next year,” Musk said at the ground breaking ceremony.
Aiming to finish initial construction this summer, start Model 3 production end of year & reach high volume production next year
— Elon Musk (@elonmusk) January 7, 2019
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