China ranks first in terms of the most number of new-energy vehicles purchased. Because of this demand, automakers like Tesla, try to cater to this market segment with a lot of electric vehicles. Interestingly, Tesla is nearing the phase where it can commence local production in its plant in China.
Bloomberg first shared the news last Wednesday and reported that China's Ministry of Industry and Information Technology had given the green light to Tesla to start mass production of electric vehicles in the country. The approval comes with a permit and an overall certification to manufacture in the Southeast Asian country.
Tesla has already begun a low scale preproduction ahead of the mass production in its China factory. The production facility in China is Tesla's first-ever manufacturing hub located outside of the US and is part of the big gamble that Chief Executive Officer Elon Musk has made. As Tesla begins realizing profits, the Southeast Asian country could potentially open bigger-scales profits and sales, considering that the company is now tapping the country's local demand for electric cars.
However, Tesla's production in its China plant will start at the time when the auto market in China cools down in the middle of the US-China trade war. By a long shot, China is still the largest auto market in the whole world. As per Bloomberg, the Tesla China factory will first build Tesla Model 3 sedans and will retail it at approximately $50,000.
#Tesla has transformed this muddy field in #Shanghai into a gigafactory in less than a year
Now it's set to churn out 1,000 cars a week
via @tictoc #EV #ElonMusk #China @alvinfoo @TopCyberNews @chboursin @mvollmer1 @AudreyDesisto @NevilleGaunt @DrJDrooghaag @Julez_Norton pic.twitter.com/Nzh9CYTqgS — Franco Ronconi (@FrRonconi) November 9, 2019
While it may look like it is far expensive compared to the Tesla Model 3 pricing in the US, it is far cheaper compared to paying tariffs imposed on vehicles shipped to the US. As the company aims for global reach, it has also made another decision for its European Gigafactory. Elon Musk recently announced that Tesla will construct a new facility located just outside of Berlin in Germany.
Elon Musk on building new Tesla site in Germany: “Brexit [uncertainty] made it too risky to put a Gigafactory in the UK." Back in 2014 - before Brexit - he told Auto Express he planned to build an R&D base in UK. Those plans have since been shelved.https://t.co/c2AYPzuyi4 — Jim Pickard (@PickardJE) November 13, 2019
The said Tesla European Gigafactory would produce Tesla vehicles for European customers. The said factory will not be ready for two years. On Nov. 21, Tesla will launch the highly anticipated Tesla Cybertruck in Los Angeles. The company is now preparing for the upcoming reveal of its electric pickup truck that will compete against Ford F-150, among others.
