Tesla to break ground on Shanghai Gigafactory today, CEO Musk says

Andrew Cummings
January 7, 2019

However, it remained unclear whether Tesla Inc.

Online ordering for Tesla cars in China has started and the configurator is quoting first deliveries in March 2019.

But since Tesla announced plans for the factory on land outside Shanghai's urban core, the outlook for China's consumer market has turned worrisome.

Banks is a friend of Grimes' and said in Instagram posts that she stayed at Musk's house in the days after he sent the tweet.

The carmaker, which now imports US-made vehicles to sell in China, is building the plant in an auto market that is set to contract this year for the first time in decades, though so-called new-energy vehicle (NEV) sales have been strong.


In China, the billionaire-entrepreneur faces a vehicle market that probably shrank a year ago for the first time in at least two decades as uncertainties surrounding the trade fight between the world's two biggest economies, signs of weakening domestic demand and a stock-market slump take their toll on consumers.

A local Chinese plant may be crucial for Tesla, which is struggling to stave off a potential dip in demand in the US, its biggest market, after reductions in federal tax credits for EVs.

China raised the import tariff on US-made cars to 40% in July, but cut it back to 15% from the start of this year as part of a ceasefire in a trade war with the US.

"Affordable cars must be made on same continent as customers", Musk said in another tweet.

Separately, Tesla confirmed in its third quarter financial report in October 2018 that it would bring "portions of Model 3 production" to China, now the world's largest vehicle market.


On Instagram, Banks posted remarks from Kristy's filing challenging her credibility and said "this is going to get extremely ugly".

"With the construction of the Shanghai factory, the faster the better (for Tesla)", Kang said.

Tesla plans to produce its Model 3 and Model Y cars in the initial phase of production at the Shanghai plant, with an annual capacity of 250,000 vehicles.

The billionaire-entrepreneur is facing a vehicle market that probably shrank a year ago for the first time since at least the 1990s as uncertainties surrounding the trade war between the world's two biggest economies, signs of weakening domestic demand in China and a stock slump take a toll on consumers.

"Aiming to finish initial construction this summer, start Model 3 production end of year & reach high-volume production next year".


The new Gigafactory will produce Tesla Model 3 and the produce will be used to cater to Greater China region demands.

Other reports by iNewsToday

FOLLOW OUR NEWSPAPER