Tesla lays foundation stone for first factory in china

Tesla lays foundation stone for first factory in china

The american electric car manufacturer tesla has laid the foundation stone for its first factory outside the u.S. In shanghai.

With an investment of more than 50 billion yuan (6.37 billion euros), the plant will be his company’s "most advanced gigafactory," tesla chief executive elon musk said at the ceremony, according to chinese news agency xinhua. The plant is to be built in record time and production of the model 3 is to begin by the end of the year.

It is the largest foreign investment project in the history of the eastern chinese port city. Tesla is the sole owner of the car plant in lingang, a production park in the southeast of the port area. The U.S. Company is thus benefiting from new rules for foreign carmakers, who, after decades of restrictions, will in future be allowed to set up their own factories in china without a chinese joint venture partner.

Production in china allows tesla to bring its cars to the world’s largest car market much more cheaply without high import tariffs. The model 3, which has sold more than 500 units in china so far.000 yuan (equivalent to 63.000 euros), could, according to xinhua, in future be around 20 percent cheaper for around 400.000 yuan (51 000 euros). More expensive models, however, will continue to be manufactured in the usa and exported to china, musk said. The planned model Y is also to be built in shanghai.

The groundbreaking takes place against the backdrop of the ongoing trade war between the u.S. And china, which has in the meantime also led to a sharp increase in chinese import duties on u.S. Cars. Actually, u.S. President donald trump wants to encourage american automakers to build more factories in the u.S. Again and thus create jobs there.

The shanghai plant is expected to begin volume production next year and eventually reach a capacity of 500 cars per year.000 cars, even if the number of cars produced was initially much lower than that. Tesla sold 245,240 cars worldwide last year, including 145,846 of the model 3.

China is pursuing a massive expansion of electromobility and is already the world’s largest market for electric vehicles. For the first time, one million vehicles powered by new energies (nevs) were sold in the people’s republic in 2018. The goal is to double that number by 2020.

Special incentive to buy is the preferential registration of e-cars in coarse cities. License plates for petrol-driven cars are now being raffled off or have to be bought at an expensive auction. Buyers often have to wait for years, while electric vehicles are registered sooner. There is also a ban on driving in cities like beijing on one day of the week, which does not apply to e-cars.

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