Published on September 11th, 2018 | by Kyle Field0
Tesla Increases Registered Capital For Shanghai Gigafactory To $681 Million
September 11th, 2018 by Kyle Field
Tesla has increased the registered capital for its new Shanghai Gigafactory from 100 million yuan ($14.6 million USD) to 4.67 billion yuan ($681 million USD) to support new scope for the factory, including core automotive manufacturing operations and battery managements systems at the new factory, according to Sina.
Tesla confirmed from the outset that it would obtain funding for the first Gigafactory in Asia from an estimated $2 billion USD in local loans, as is required for foreign companies seeking full ownership of local factories in China. The new registered capital represents the next step in this direction as Tesla builds on its registration of Tesla Co., Ltd, which is fully owned by Tesla Motors HK Limited.
Moving forward, Tesla is expected to consolidate production of all of its business units into new Gigafactories, with battery cell production as the foundation. These will be built from raw materials into battery cells, which will be used in on-site vehicle production and energy product manufacturing. Solar production is also expected to be included in scope, allowing Tesla to bring its full suite of new energy products into a market under a single roof.
Building its products in China is especially critical for the new Shanghai Gigafactory as Trump’s global trade war has resulted in significant tariffs for Tesla’s products being exported into China, causing prices of Tesla’s vehicles to skyrocket in China.
The new Shanghai Gigafactory is Tesla’s third gigafactory. The first gigafactory is its greenfield factory outside Reno, Nevada, which is being built from the ground up as a battery factory but has seen more and more actual vehicle component manufacturing being added to the facility with the startup of Model 3 production. Gigafactory 2 is located just outside Buffalo, New York, and was folded into Tesla as part of the SolarCity acquisition.
In addition to traditional solar panel production, Tesla is using the facility to refine and produce its Solar Roof Tiles as it works to ramp up production of all four formats of the roof tile. Tesla is expected to be in production of its Textured and Smooth tiles this year, with the more technically complex Tuscan and Slate tiles following when production is further along.