Breaking News — Tesla Seals The Deal For Gigafactory 3 In China

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It’s official. Tesla has acquired just under 1300 acres of land in the Shanghai Lingang Equipment Industrial Zone for its Gigafactory 3. The factory is expected to cover about 1200 of those acres. The official signing ceremony for the transfer of land to Tesla took place in China on October 17, today.

Tesla is pushing hard to get the Gigafactory 3 project moving forward. Thanks to the tit for tat trade war initiated by the current US president and his crack team of economic advisers, Tesla cars manufactured in America now must pay an import tariff of 40%, making it hard for them to compete against locally produced automobiles. Cars built in the new factory outside Shanghai will be exempt from that tariff.

Tesla plans to be a major force in the Chinese new car market, especially as China institutes its latest EV policy starting January 1, 2019. After that date, every manufacturer building cars in the country will be required to produce a certain percentage of electric cars, known locally as new energy vehicles. Battery electric cars will get the most credits under the system. Plug-in hybrids will get a smaller credits.

Companies who wish to continue building cars with gasoline or diesel engines will be required to buy credits in order to do so. That will raise the selling price of those cars, making new energy vehicles more competitive in the marketplace.

Last month, Tesla began advertising numerous jobs for construction workers to help build the new factory, which is expected to have a capacity of 500,000 vehicles a year. Tesla expects the factory to begin producing cars in fewer than 2 years time — an incredibly short ramp up from breaking ground on the factory to getting cars rolling off the assembly line and into the hands of customers. But when have short timelines ever been a problem for Tesla?

It reportedly has increased the funding committed to the Gigafactory 3 project to $681 million. And as Vincent indicates on Twitter, local banks in the Shanghai area are actively engaged in lining up the additional funding needed to build GF3.

With the biggest new car market in the world, China is an important market for Tesla. Just how important is indicated by the fact that it is moving forward aggressively with plans for a Chinese factory before committing to a factory in Europe. Check out this video from the World Economic Forum on the rosy prospects for electric cars in China:

Check out more Tesla China news if this isn’t enough for you.

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Steve Hanley

Steve writes about the interface between technology and sustainability from his home in Florida or anywhere else The Force may lead him. He is proud to be "woke" and doesn't really give a damn why the glass broke. He believes passionately in what Socrates said 3000 years ago: "The secret to change is to focus all of your energy not on fighting the old but on building the new." You can follow him on Substack and LinkedIn but not on Fakebook or any social media platforms controlled by narcissistic yahoos.

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