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

Slow-charging EVs could be charged more when Tesla Supercharger network opens for all
Tesla supercharger
Tesla

Slow-charging EVs could be charged more when Tesla Supercharger network opens for all

Non-Tesla EVs will soon be able to access the Supercharger network using the firm’s app, but slow-charging cars may need to pay a premium
27 Jul 2021
New Tesla steering wheel is legal in the UK
Tesla steering wheel
Tesla

New Tesla steering wheel is legal in the UK

The Department for Transport has confirmed that Tesla’s unusual steering control will pass through UK safety regulations
5 Feb 2021
'Other brands should be a bit more Tesla’
Opinion Tesla steering wheel
Opinion

'Other brands should be a bit more Tesla’

Editor-in-chief Steve Fowler thinks Tesla should be praised for its original approach to selling cars
3 Feb 2021
Tesla infotainment system recall extended to UK cars
Tesla recall
News

Tesla infotainment system recall extended to UK cars

Customers are reportedly being prevented from using certain safety features, leading regulators to push for Tesla recall
3 Feb 2021

Most Popular

Land Rover unveils limited-run Defender Trophy Edition
Land Rover unveils limited-run Defender Trophy Edition - front
Land Rover Defender

Land Rover unveils limited-run Defender Trophy Edition

Just 220 examples will be built to honour past Camel Trophy Land Rovers, all of which have been reserved for the North American market
30 Jul 2021
New 2021 Volkswagen Taigo coupe-SUV breaks cover
Volkswagen Taigo R-Line - front
Volkswagen Taigo

New 2021 Volkswagen Taigo coupe-SUV breaks cover

The new VW Taigo is a sportier, more aggressive looking version of the brand’s T-Cross and is aimed at lifestyle buyers
29 Jul 2021
New 2021 Kia EV6 boasts up to 328 miles of range
Kia EV6 - front
Kia EV6

New 2021 Kia EV6 boasts up to 328 miles of range

Kia reveals more specs for its bespoke electric car, with the EV6 offering long range and an 18-minute 80 per cent rapid recharge time
21 Jul 2021