Tesla shows interest in $ 145 million plot in China for his nearest gigafactory

Tesla shows interest in $ 145 million plot in China for his nearest gigafactory-china

Tesla seems to be that the first property outside the US wants to acquire to leave his next Gigafactory. This is due to the knowledge of experts who are familiar with the matter. The automaker is the only bidder for a property with an auction price of about 1 billion yuan ($ 145 million). The information is currently not public. A decision of the Shanghaier government to allocate the Land Tesla could already be taken this month, they said.

After Tesla’s tough fight for an electric car factory in China, the foundation for Tesla production in China was laid in May 2018. With the fall of the 50/50 rule, automobile manufacturers no longer need a Chinese partner who founds a joint venture with their own company in order to gain a foothold there. Shortly thereafter, Tesla was in talks with those responsible.

In July, reports were confirmed by Tesla CEO Elon Musk that he was in Shanghai and signed an agreement with the city government to build a manufacturing facility there. Almost everything is to be manufactured in Tesla’s Chinese Gigafactory, from the battery cell to the finished electric car. The Gigafactory will be built in Lingang New City, a planned city in Shanghai’s Pudong District. We are currently talking about a production capacity of more than 500.000 vehicles annually. Tesla wants to start production in two years.

At the beginning of August, the hiring of employees for the upcoming Chinese plant began. The number of vacancies is still minimal at this point in time. Reuters reported that most of these initial job openings are for candidates with six or more years of experience looking for managerial positions. Also, a Chinese lithium giant has struck a three-year deal to supply Tesla: Ganfeng Lithium Co, China‘s leading lithium maker, said it has reached an agreement with Tesla to allocate a fifth of its production to electric cars -Manufacturer to supply.

Establishing manufacturing in China will allow the Palo Alto, California-based company to avoid import tariffs of up to 40 percent and offer cheaper cars in the world’s largest electric vehicle market. Only recently was a reduction in tariffs in the room.

The Shanghai government did not respond to a request for comment, which was sent outside normal business hours. Tesla representatives also did not immediately comment.

The automaker is considering raising some of the $5 billion it plans to invest in the plant near Shanghai from local partners, Bloomberg News reported on Jan. August and quoted a person familiar with the plans.

Related articles

Please follow and like us:

Leave a Comment