Home GRASP GRASP/China Tesla hopes to produce 500,000 cars per year at new Shanghai plant

Tesla hopes to produce 500,000 cars per year at new Shanghai plant

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The California-based automaker has been trying to plant its feet in The Middle Kingdom for more than a year.
China is an important market to Tesla, and having to deal with import-export tariffs and subsequent price hikes only makes the market more difficult to penetrate. That’s part of the reason why it’s excited to set up an actual factory over there.
Tesla and the Shanghai government have reached a preliminary agreement to establish a Tesla factory over there. The automaker hopes to eventually build some 500,000 vehicles per year at its Shanghai plant. In a statement, the Shanghai government noted that this is the largest foreign-invested manufacturing project in the city’s history.
“Today, we have signed a Cooperative Agreement for Tesla to start building Gigafactory 3, a new electric vehicle manufacturing facility in Shanghai,” Tesla said in an emailed statement. “We expect construction to begin in the near future, after we get all the necessary approvals and permits. 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.

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