Economy

Tesla hopes to produce 500,000 cars per year at new Shanghai plant

Tesla hopes to produce 500,000 cars per year at new Shanghai plant

In response to the 25 per cent tariff the US implemented on $34 billion worth of Chinese imports, the Asian superpower bumped its tariff on electric cars from 15 per cent to 40 per cent. That's impressive for such a new auto company, but Tesla just signed a deal in China allowing production to increase by another 500,000 a year.

As the trade war between the us and China (as well as the rest of the world) escalates, Tesla announced Tuesday an agreement with Chinese officials to build a new factory in Shanghai, reports Reuters.

"Last year, we announced that we were working with the Shanghai Municipal Government to explore the possibility of establishing a factory in the region to serve the Chinese market", a Tesla spokeswoman said in an statement emailed to Green Car Reports.

Sacconaghi has a "Market Perform" on TSLA and a price target of $265.

The signing ceremony was attended by Tesla chairman Elon Musk, Mayor Ying Yong and other Chinese officials, according to the city government.

In a first for a foreign automaker, Tesla was allowed to open the factory without partnering with a Chinese company. A Tesla representative in China didn't immediately respond to a request for comment.

Elon Musk, now traveling in Asia, signed an agreement Tuesday with officials in Shanghai to build a factory with the capacity to produce up to 500,000 vehicles per year.

More news: United States envoy meets North Korean officials at DMZ

Tesla's China project was first reported by Bloomberg.

The plant will start producing cars two or three years after construction begins, according to Reuters, with an eventual capacity of 500,000 cars per year. The WSJ reports that China is Tesla's second-biggest market outside of the USA and that it sold about 17,000 cars there in 2017 compared to the 50,000 stateside.

Tesla is among companies hit by additional 25 percent import duties imposed by Beijing in retaliation for a tariff hike by U.S. President Trump in a dispute over technology policy.

Musk had previously criticized China's tough auto rules for foreign businesses, which would have required it to cede a 50-percent share in the factory.

Tesla is particularly exposed to escalating trade tensions between China and the USA because the company doesn't have a factory in China, unlike other automakers such as BMW, Ford Motor and GM. Musk mentioned in an earnings call that a China factory would be the only way for Tesla to compete with the prices of China's local electric auto makers. That gave it about 3 per cent of the nation's battery-powered electric-vehicle market, placing it as the No. 10 brand in that segment. Electrek also says stores will get Performance Model 3 vehicles by the end of the month.

"Tesla is deeply committed to the Chinese market, and we look forward to building even more cars for our customers here", the company said in a statement.


  • Holiday Fire in Goleta scorches 100 acres; 80 percent contained

    Holiday Fire in Goleta scorches 100 acres; 80 percent contained

    The fire moved so fast that some residents struggled to get out of the hillside community, and 911 lines were jammed with calls. The biggest fires burning in the Mountain West states are the Spring Creek fire in Colorado and the Dollar Ridge fire in Utah.
    EPA administrator Scott Pruitt resigns

    EPA administrator Scott Pruitt resigns

    Key presidential allies, like donor Harold Hamm, repeatedly told Trump that Pruitt was actually carrying out his agenda. Murray, is an aggressive opponent of important air-pollution rules that the Obama EPA tried to impose and that Mr.
    Malaysia's Najib Razak pleads not guilty to criminal charges

    Malaysia's Najib Razak pleads not guilty to criminal charges

    The couple's two children Ashman Najib and Nooryana Najwa Najib were in court on Wednesday. It is also being investigated in six countries for alleged money laundering.
  • Watch Elon Musk's Thai Cave rescue submarine in action

    Watch Elon Musk's Thai Cave rescue submarine in action

    The operation began at around 11 a.m. local time on Monday and is expected to finish for the day around 9 p.m, reported the BBC . The first four rescued boys have been placed in a ward set aside specifically for the cave rescue, a source at the hospital said.
    Sen. Hatch doesn't think Barrett will be SC pick

    Sen. Hatch doesn't think Barrett will be SC pick

    Departing his New Jersey golf club on Sunday afternoon, Trump told reporters he was still making up his mind. Trump insisted he still hadn't locked down his decision, which he wants to keep under wraps until a 9 p.m.
    Serena Williams Says Breastfeeding Didn't Make Her Lose Weight

    Serena Williams Says Breastfeeding Didn't Make Her Lose Weight

    What I've learned is that every body is different - no matter how much I worked out, it didn't work for me. In between all of the winning, she's busy being a mom to her 10-month-old baby girl.
  • North Korean, US officials seek clarity in second day of Pyongyang talks

    North Korean, US officials seek clarity in second day of Pyongyang talks

    Pompeo pointed to an incremental development in North Korea's commitment to return the remains of missing American soldiers . Speaking in Tokyo , Pompeo said his efforts to push the North on disarmament had the backing of the entire global community.
    Belgium can beat 'best team' Brazil in quarterfinal clash - Romelu Lukaku

    Belgium can beat 'best team' Brazil in quarterfinal clash - Romelu Lukaku

    There are many places including free and paid streaming services that will allow you to watch the Brazil vs. Hazard finds De Bruyne on the edge of the area, but can't work an opening, the ball goes back to Courtois.
    Netflix is Testing a New High End Ultra Plan

    Netflix is Testing a New High End Ultra Plan

    Nearly 6.4m new global subscribers were added in the final quarter of previous year , along with more than 1.9m users from the US. Supposed screenshots showing the new plan made it online and it now appears as though they're genuine.
  • Trump's ex-lawyer fires what could be a warning shot

    Trump's ex-lawyer fires what could be a warning shot

    On CNN's "State of the Union" , host Dana Bash asked if Giuliani was going back on his past comments that he didn't think Cohen would " flip " on Trump.
    Northern California wildfire grows to 70000 acres

    Northern California wildfire grows to 70000 acres

    State fire officials said 700 homes and other buildings were threatened but none had burned. The damage toll could rise because the burn area is still being surveyed.
    Park wins playoff to capture KPMG Women’s PGA

    Park wins playoff to capture KPMG Women’s PGA

    Charley Hull turned in a 67 on Sunday at Kemper Lakes to finish in a tie for sixth, her third top 10 at the majors this season. From the awkward stance, Park chopped one out of the fescue and the ball landed softly to within a few feet of the cup.