Tesla confirms factory in China

Tesla will build a "gigafactory" in China with a production capacity of around 500,000 electric cars per year.

Photo: Tesla

US-based EV manufacturer Tesla has confirmed that it will build a "gigafactory" in China, writes CNBC.

Plans for the factory have been on the table for a year, but the company has just now signed an agreement with the municipal government in Shanghai.

Tesla still needs to secure several licenses, and it may take up to five years before the factory is operating at full capacity and thereby able to produce 500,000 electric cars per year.

"Last year, we announced that we were working with the Shanghai Municipal Government to explore the possibility of establishing a factory in the region to serve the Chinese market. Today, we have signed a Cooperative Agreement for Tesla to start building Gigafactory 3, a new electric vehicle manufacturing facility in Shanghai," Writes Tesla in a statement, according to CNBC.

Tesla founder and CEO Elon Musk announced already back in 2014 that the company has big plans in China, including a nation-wide network of recharging stations. China is well underway in becoming the world's largest EV market, thereby becoming a big potential money maker for Tesla, says an analyst to CNBC.

The new announcement from Tesla comes shortly after the company had to raise its prices by 20 percent due to new tariifs.

English Edit: Daniel Frank Christensen

Tesla reached an important target – but is still far off mark from impressing US giants 

Nel to build hydrogen fueling stations in Germany and Norway

BP Buys U.K.’s Largest Electric Vehicle Charging Company 

More from EnergyWatch

New developer has 11GW offshore wind ready from inception

Profiles from European Energy, Ørsted and Centrica team up to found a new company aiming to develop solar, onshore wind, offshore wind and do power trading. Theres a hole in the market for us right now — in five years it will be closed, says director.

CIP hires Dutch profile

Current CFO at TenneT Otto Jager will join CIP as partner, with a primary focus on flagship funds.

Further reading

Related articles

Latest News

See all jobs