Electric automaker Tesla expects its first gigafactory outside of the United States to begin full operations by the end of the year. When the company's $7 billion factories in Shanghai becomes fully operational, Tesla will be able to rapidly meet China's demand for its products while also circumventing any untoward effects brought about the future trade tensions.
Tesla made the announcement to update the public on the progress of its gigafactory late last week at the China (Shanghai) Pilot Free Trade Zone's Lingang Special Area. Executives released the update during a signing ceremony at the FTZ, where Tesla participated in a number of intelligent connected electric vehicle projects.
The electric car manufacturer stated during the event that the core parts of its gigafactory had completed construction. This includes the completion of areas used to punch, paint, and assemble components that will eventually result in a complete vehicle.
Tesla further explained that the majority of the areas are already ready for production.
Tesla's CEO Elon Musk announced on Twitter late last week that the company will be forming a separate engineering team in China that will be focusing on the development of software and firmware to be used for the factory and the vehicles it will be producing. Tesla also posted on its WeChat account several ads for a number of job vacancies available at the factory.
Tesla's global vice-president, Tao Lin, boasted that it only took the company around six months from the signing of the initial contracts to the establishment of the factory in Lingang last year. The executive explained that the rapid establishment of the factory is a clear testament to the efficiency of the FTZ in Shanghai.
The Special Area where Tesla's factory is located is technically not part of the FTZ. However, on August 20, the area was officially integrated into the Shanghai FTZ as a section that will focus on high-end manufacturing industries such as biomedicine and chip making.
Lingang Special Area executive deputy director Zhu Zhisong had stated that the industrial cluster within the area is slowly taking shape. Apart from Tesla, several other companies had signed various agreements to establish facilities in Lingang, with a total investment estimated to be worth around $1.12 billion.
The local government had reportedly hand-picked the most innovative projects for the Lingang Special Area. Only those that offered the best scientific research capabilities and industrial application were permitted. The purpose of which is to link multiple industries with the establishment of a functional platform to ultimately create a "globally influential" electric industrial cluster.