Elon Musk confirms Shanghai site for Tesla Model 3 and Model Y

Tesla has started construction of its Chinese Gigafactory, and is set to produce 200,000 models for the Chinese market from late 2019

Tesla CEO Elon Musk has confirmed the firm’s new £1.57 billion Shanghai Gigafactory is now under construction in China. Musk revealed the news on social media, stating the company’s intention to finish the plant’s construction by the summer – before starting low volume production by the end of the year.

Musk’s Twitter update confirmed that the Shanghai production plant will only produce “affordable versions” of the Tesla Model 3 and forthcoming Tesla Model Y. The Model S, Model X and higher-spec Model 3s and Ys will be produced and imported from the US. The Chinese factory will only supply cars for the “greater China” market.

Tesla’s move follows China’s recent trade tariff increase on US-made cars. By producing the Model 3 and Model Y locally, Tesla aims to side-step this tax and compete with the latest generation of all-electric Chinese rivals, from companies such as NIO and Byton.

The American electric car manufacturer signed a deal with the Shanghai government in July 2018, and acquired an 865,000 square-metre plot of land for the production site in October of the same year.

The news comes as Tesla begins Model 3 sales in Europe – many months after the first cars were due. The car will arrive on the continent shortly, before UK cars are delivered later in 2019.

What are your thoughts on Tesla’s latest business venture? Let us know in the comments section below…

Recommended

Tesla applies for UK electricity provider licence
Electric cars

Tesla applies for UK electricity provider licence

The American EV manufacturer is preparing to build a new UK energy company, based on the battery technology used in its electric vehicles
4 May 2020
Tesla is the most valuable US car maker of all time
Tesla Model 3 - Front Tracking
Tesla

Tesla is the most valuable US car maker of all time

Tesla's market capitalisation of $81.39bn sees it surpass Ford’s record from 1999, now worth nearly as much as Ford and GM combined
8 Jan 2020
“Tesla is now the hunted instead of the hunter”
Tesla

“Tesla is now the hunted instead of the hunter”

Chief reviewer Sean Carson thinks Tesla can’t afford to rest on its laurels at the top of the electric car tree with the likes of Audi, BMW and Merced…
6 Aug 2020
Tesla Autopilot slammed as “especially misleading” by UK safety experts
Tesla

Tesla Autopilot slammed as “especially misleading” by UK safety experts

Following a criticism by a German court that Tesla’s driver assistance systems are marketed incorrectly, UK safety experts express similar concerns
15 Jul 2020

Most Popular

New 2021 BMW M3 launched with huge grille and 503bhp
BMW 3 Series M3 Coupe

New 2021 BMW M3 launched with huge grille and 503bhp

The new sixth-generation BMW M3 Competition saloon gets a 503bhp straight-six engine and four-wheel-drive
22 Sep 2020
Energy firms want the right to switch off electric cars charging at home
Electric cars

Energy firms want the right to switch off electric cars charging at home

New powers being sought to allow energy providers to turn off high-drain devices to manage electricity network
18 Sep 2020
New Honda Civic Type R 2020 review
Honda Civic Type R

New Honda Civic Type R 2020 review

We find out if the revised Honda Civic Type R can stay at the top of the hot hatch class
22 Sep 2020