The CA based Electric Vehicle maker frim, has been targeting to accelerate sales in China, which was hit hurt by the impact of trade conflict between Beijing and Washington.
Tesla Inc will break ground on its Shanghai Gigafactory on Monday, Chief Executive Elon Musk said in a tweet https://twitter.com/elonmusk/status/1082103637990625281, formally starting construction of the USA electric vehicle (EV) maker's first Chinese plant as its ramps up its presence in the market.
While the ground-breaking event, scheduled for 3 p.m. local time at a site near the city, marks a new journey for Tesla, it comes at a point where China's economy is showing signs of strain amid the trade war with the U.S. The challenging environment also includes competition from several startups that all want to be like Tesla. The losses were attributed to reports that Tesla had over 3,000 Model 3s in inventory in the United States by December 30, 2018.
If you thought that 2018's most batshit feud was over, THEN OH BOY, YOU THOUGHT WRONG, BUDDY, as over the weekend, Azealia Banks blew up at Elon Musk yet again, claiming that she has even more dirt to dish on the billionaire, and things could get "ugly".
A fully owned facility also would mean Tesla will not need to share its profits and technology with Chinese partners, unlike other foreign carmakers which are required to form a domestic joint venture.
China raised the import tariff on US-made cars to 40 percent in July, but cut it back to 15 percent from the start of this year as part of a ceasefire in a trade war with the United States. Stock losses in China previous year wiped out more than US$2 trillion of wealth, denting consumer appetite for luxury goods.
Tesla signed a preliminary agreement in July with the Shanghai government past year to build the 500,000-unit factory in the Chinese city. In October, it said it paid about $140 million to secure more than 200 acres of land for the planned Gigafactory 3.
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 new Gigafactory will produce Tesla Model 3 and the produce will be used to cater to Greater China region demands.
The Shanghai government said in a statement its mayor Ying Yong urged the firm to "accelerate" work on the factory and said production would start to some degree in the second half of 2019 during a land visit in December previous year.