New Tesla Plant in China

Tesla - depositphotos

CBJ — Tesla’s CEO Elon Musk has ratified an agreement with Chinese state officials to build a new auto plant in Shanghai.

The Asian plant will mark the first factory outside of the U.S. and is expected to double the size of the electric car maker’s international manufacturing capabilities.

The deal was consummated in large part as Tesla’s reaction to offset the cost of new tariffs imposed by the Chinese government in retaliation for U.S. President Donald Trump’s expansive duties on Chinese goods.

Tesla plans to begin producing vehicles in about two years after completion of the construction. The target is to reach 500,000 vehicles a year about two to three years later, which would result in the Shanghai plant producing about the same equivalent as the plant in Fremont, California.

@CanBizJournal

 

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