Tesla will build a factory in China, which will produce 500,000 electric vehicles per year

Today it became known that a contract was signed between the Chinese authorities and the management of Tesla Inc. The essence of the contract is the construction of an electric vehicle factory in the PRC with a capacity of half a million electric vehicles per year. It will be created in Shanghai. According to the leadership of the region, it will be the largest industrial facility in the entire history of Shanghai.

The contract was not signed suddenly - the parties discussed the possibility of building an industrial facility of this magnitude relatively long ago. The problem is that the cost of Tesla in China is 25% higher than in the US or Europe. Therefore, with all the desire, some Chinese can not afford to buy and so expensive electric car. If the factory is built in China, mark-ups can be avoided.

Then electric cars produced in China will be sold directly to the Chinese. For the first time about the possibility of creating an industrial facility Tesla in China , Bloomberg reported . This was followed by confirmation from Tesla, then - from China.

“Last year we announced cooperation with the Shanghai authorities. His goal is to explore the possibilities of creating a factory that could serve the Chinese market, ”said Tesla. “Today we signed an agreement to start the construction of“ Gigafabrika 3 ″, a new industrial facility in Shanghai. ”

After obtaining all the necessary permits, Tesla will be able to achieve the goal of producing 500,000 electric vehicles per year, not earlier than in a few years. It will take about two years to build a factory, and about three years to achieve the set production volumes.

And it should also be borne in mind that Tesla is always optimistic about deadlines. Quite often, the terms break down. However, at the end of June this year, the company managed to increase production to 5,000 electric vehicles per week at its factory in Fremont. This goal was set initially at the end of 2017.

Many market experts believe that the company will not be able to fulfill its promises in time, and it will have to postpone the deadline again. But be that as it may, an agreement with China has been reached and work has begun.