Tesla grabs 210-acre plot in China to build Gigafactory
18 Octobre, 2018, 18:36 | Auteur: Auguste Feret
After announcing in August that the company would be investing $5 billion in a factory outside Shanghai-its first outside the US -it has finally secured the land for the planned gigafactory.
Reuters reported Wednesday that Tesla has signed an agreement with the Shanghai government for an 860,000-square meter plot of land for the new site, which represents a major step for Tesla's Chinese production strategy.
"Securing this site in Shanghai, Tesla's first Gigafactory outside the United States, is an important milestone for what will be our next advanced, sustainably developed manufacturing site", said Robin Ren, Tesla's vice-president of worldwide sales.
Tesla did not give the price tag for the plot, but the Shanghai Bureau of Planning and Land Resources said on Wednesday that a plot of land of 864,885 square meters had been sold at auction at a price of 973 million yuan ($140.51 million).
Earlier this month, Teslasaid it was speeding up construction of the factory in Shanghai to offset a steep competitive disadvantage in China against other producers and even other imported cars, which it said are carrying a lower, 15 percent tariff.
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The company's goal is to produce "up to" 500,000 cars per year at the factory by the "end of the decade".
Tesla's foray into China is becoming a reality.
Tesla's investment in China, the world's largest auto market, can help it effectively dodge import duties levied on foreign-made vehicles in China, which can be as high as 40 per cent.
Last year, reports circulated that Tesla was in talks with the Shanghai government to build a factory in the city's "free trade zone".
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