EV factory in Shanghai

Tesla reportedly made deal to open a EV factory in Shanghai

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Tesla has reportedly made a deal with the govt. in Shanghai to open up a manufacturing facility within the city’s trade-free zone, the Wall Street Journal reports.

 

Foreign car-makers traditionally partner with local makers, but which will reportedly not be the case with Tesla. Instead, Tesla will own the whole manufacturing plant. which means Tesla will be able to cut some costs of production and ultimately the sale value of Teslas in China, but it’ll likely still be responsible for paying China’s 25 % import tariff.

 

Rumors of this deal 1st surfaced in June, when Bloomberg reported Tesla was in talks with Shanghai’s local government to make its cars there for the 1st time. Tesla later confirmed it had been in talks to build a industrial plant in Shanghai.

 

China has the world’s largest vehicle market and has aggressive targets for electric cars. The Chinese government is planning to sell seven million electric vehicles a year by 2025. In Sep, China ordered all car-makers operating in China to start making EVs by 2019.

 

The timing of the official announcement is unclear. Tesla declined to comment for this story, but pointed to a statement a spokesperson made in June:

 

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Source:techcrunch.com

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