#JustIn : Tesla will break ground on Gigafactory 3 in China today

Gladys Abbott
January 7, 2019

Musk said on his official Twitter account.

The CA based Electric Vehicle maker frim, has been targeting to accelerate sales in China, which was hit hurt by the impact of trade conflict between Beijing and Washington. China's southern neighbour has already laid out aggressive electric mobility plans and Tesla has always been in the scheme of things.

While the ground-breaking event, scheduled for 3 p.m. local time at a site near the city, marks a new journey for Tesla, it comes at a point where China's economy is showing signs of strain amid the trade war with the U.S.

Tesla is set to build the Model 3 sedan in China from late 2019.

The Tesla shareholders say the former girlfriend, Canadian singer Claire Elise Boucher, also known as Grimes, may have first-hand knowledge about what Musk was thinking August 7 when he shocked the world with a tweet: "Am considering taking Tesla private at $420".

The carmaker, which now imports US-made vehicles to sell in China, is building the plant in an auto market that is set to contract this year for the first time in decades, though so-called new-energy vehicle (NEV) sales have been strong.

Tesla's Shanghai venture comes as United States companies face pressure from President Donald Trump to keep manufacturing jobs at home, and as Beijing and Washington persist with a trade spat that has seen both sides levy tariffs on hundreds of billions of dollars of products.

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A local Chinese plant may be crucial for Tesla, which is struggling to stave off a potential dip in demand in the USA, its biggest market, after reductions in federal tax credits for EVs.

In October, Tesla announced that it secured 210-acres of land for Gigafactory 3 in China and said that it is "on track" with an accelerated construction plan. "And the competition is getting more and more fierce".

The facility is expected to churn out about 250,000 vehicles annually at first - the Model 3 and the planned Model Y - and that capacity will double over time.

The so-called Gigafactory would also be China's first wholly foreign-owned auto plant, a reflection of China's broader shift to open up its vehicle market even amid the whipsawing trade war.

"Aiming to finish initial construction this summer, start Model 3 production end of year & reach high-volume production next year".

"Shanghai Giga production of Model 3/Y will serve greater China region", Musk added in another one.

Other reports by LeisureTravelAid

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