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Bloomberg
Three months after groundbreaking, Tesla Inc is rushing to complete its multibillion-dollar factory on the outskirts of Shanghai to capitalise on growing demand in the world’s largest electric-car market.
Foundations for the facility have been laid, and construction workers are erecting walls and other structures for the factory, which could eventually rival production from its US assembly plant. Tesla broke ground at the 210-acre “Gigafactory 3†site, its first outside the US, in January.
Founder Elon Musk said that production in Shanghai could reach a rate of 2,000 vehicles a week by the end of the year. A Shanghai government official said in March that he expected the factory’s assembly shop to be completed already in May.
The factory will help Tesla to avoid the current 15 percent tariff on imported cars from the US, making its pricing more competitive against local brands.
The need for Tesla to expand beyond its home market of the US was highlighted by the earnings it reported, with first-quarter results missing analysts’ projections. The halving of a federal tax incentive for Tesla purchases starting in January dragged on US demand in the quarter, and Tesla struggled to offset that drop by starting deliveries of the Model 3 in Europe and China.