Tesla breaks ground for Gigafactory 3 in China – production will start at the end of 2019

Tesla breaks ground for Gigafactory 3 in China - production will start at the end of 2019-production

From March 2019, the Model 3, in selected variants, will come to China. First imported from the USA, probably also with a price reduction due to lower punitive tariffs, later manufactured directly in China. The groundbreaking ceremony for Tesla’s Gigafactory 3 will take place today.

In October last year, Tesla acquired a 210-hectare plot of land for its Chinese gigafactory in the Lingang region of Shanghai. Earlier this summer, Tesla announced an agreement with the Shanghai government to build a wholly local factory.

Due to the trade war between the USA and China, the car manufacturer is accelerating its own plans. Initially, there were two years in the room before going into production. The company recently received planning permission for the first phase of construction on the site and plans to act quickly.

More precisely, the construction should be completed by the summer of 2019. Start of production in the Gigafactory 3 is planned for the end of the year. Large-scale production of the Tesla Model 3 is scheduled to begin next year. Until Gigafactory 3 is finished, you can take a look inside Gigafactory 2 here.

update – 07.01.2019 – Statements from the groundbreaking speech for Gigafactory 3

Elon Musk tweeted that the new Gigafactory 3 in China would only produce “affordable” versions of the Model 3 and Model Y. High-end versions of the vehicles, such as the Model 3 Performance, would continue to be built in the United States and exported to international markets including China. Such an announcement bodes well for Tesla’s strategy to gain a foothold in China.

After all, Tesla‘s vehicles in China have so far been more expensive than electric cars made by local manufacturers. By producing the “standard models” of the Model 3 and Model Y, Tesla would be able to offer the vehicles very competitively in the country. Especially since the electric cars would not be subject to import taxes.

After the project was officially announced last year, it wasn’t long before local Shanghai banks extended soft loans to Tesla to fund part of the facility’s construction. The company’s construction partner, China Construction Third Engineering Bureau Co., ltd. is also a subsidiary of China Construction, which is owned by the government. So you can be sure that China’s government will do its part to ensure that the envisaged schedule is met.

We have included Elon Musk’s speech at the groundbreaking ceremony for Gigafactory 3 below for you.

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