Published on October 17th, 2018 | by Steve Hanley0
Breaking News — Tesla Seals The Deal For Gigafactory 3 In China
October 17th, 2018 by Steve Hanley
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.
Breaking Update: At the signing ceremony held today, Tesla and the Shanghai Planning and Land Resources Administration formally signed the “Land Transfer Contract”, and the Tesla Shanghai Super Factory will exceed 1200 acres (over 860,000 square meters). $TSLA #TeslaChina pic.twitter.com/2ntQRNigCO
— vincent (@vincent13031925) October 17, 2018
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:
The following clip fully explain the future development and demand of EV market in China🇨🇳. Tesla will play an important role in China's new energy vehicles revolution once the #Tesla Shanghai Gigafactory ready to run. @elonmusk $TSLA #TeslaChinapic.twitter.com/aFZsxRuQcs
— vincent (@vincent13031925) September 25, 2018
Check out more Tesla China news if this isn’t enough for you.