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Tesla’s Chinese Factory Is Under Construction

TexasTesla

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(CNN Business)

Jan 7th, 2019

Tesla's new manufacturing plant in China is officially under construction.

CEO Elon Musk broke ground on the electric carmaker's huge factory in Shanghai on Monday, kickstarting a plan to eventually make half a million vehicles in China every year.

The company is aiming to complete the initial construction work this summer and start producing its cheapest car, the Model 3, by the end of the year.

The Gigafactory in Shanghai's Lingang Industrial Zone is the biggest foreign investment in manufacturing the city has ever seen, the Shanghai government said in a statement Monday. The government also reiterated Tesla's initial target to make 250,000 cars a year, eventually ramping up to 500,000.

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Tesla is aiming to start production at its Shanghai Gigafactory by the end of this year.

The factory, Tesla's first outside the United States, will produce "affordable versions" of the Model 3 and it’s Model Y crossover for customers in China.

Pricier versions of the two cars, as well as Tesla's other vehicles such as the Model S and Model X, will still be produced in the United States for global markets including China, he added.

"Affordable cars must be made on same continent as customers," Musk had tweeted earlier.

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