Tesla, the American electric car manufacturer, is building a new battery factory in Shanghai, China, in a bid to expand its production capabilities and tap into the world’s largest car market. The news was reported by Xinhua News Agency, China’s state-run media, Friday, April 8th.
The new factory, which is being built in Shanghai’s Lingang Industrial Zone, will produce batteries or Megapack for Tesla’s electric vehicles, as well as for the stationary energy storage systems that the company sells. The factory is expected to start production in the second half of 2022.
The new Megapack factory is a significant step for Tesla, as it will allow the company to manufacture its vehicles locally in China and avoid the country’s high import tariffs. Tesla currently sells cars in China but was imported from the United States, which makes them more expensive for Chinese consumers. By producing electric vehicles in China, Tesla will be able to offer them at a more competitive price and compete more effectively with other electric car manufacturers in the country.
The factory will also help Tesla meet the growing demand for electric vehicles. According to Xinhua, China is the world’s largest market for electric cars, with sales of 1.37 million units in 2020. The Chinese government has been promoting the use of electric vehicles as part of its efforts to reduce air pollution and cut greenhouse gas emissions.
Tesla has been expanding its presence in China over the past few years. In 2019, the company opened a factory in Shanghai to produce Model 3 cars for the Chinese market. The factory was a success, with Tesla selling more than 35,000 cars in China in March 2021 alone.
The new battery factory is also part of Tesla’s efforts to increase its production capacity and meet its ambitious sales targets. Tesla CEO Elon Musk has said that he expects the company to produce 20 million electric cars per year by 2030, which is a significant increase from the approximately 500,000 vehicles that the company sold in 2020.
The construction of the new factory is expected to create thousands of jobs in Shanghai and contribute to the city’s economic growth. The Lingang Industrial Zone, where the factory is being built, is a high-tech industrial park that focuses on advanced manufacturing and research and development.
The new factory is also a significant investment for Tesla. According to Xinhua, the company has invested $1.4 billion in the factory so far, and the total investment could reach $5 billion once the factory is fully operational.
The new battery factory that Tesla is building in Shanghai is a significant step for the company as it expands its production capabilities and taps into the world’s largest car market. The factory will allow Tesla to produce cars locally in China, meet the growing demand for electric vehicles, and compete more effectively with other electric car manufacturers in the country. It is also a significant investment for the company and will create thousands of jobs in Shanghai.