Tesla has reportedly closed a deal to buy 210 acres of land in Shanghai for a Gigafactory

[Polycount]

Tesla wants to expand its business operations in China, according to a Wall Street Journal report published today. Though it ran into a bit of a roadblock earlier this year due to US-China trade war tariffs, the company has been selling its vehicles in the country for some time, with quite a bit of success.

Now, though, Tesla has reportedly bought a massive plot of land in the country -- 210 acres in total -- with the intention of building an entirely new Gigafactory. If Tesla does so, it'll be the first time a Gigafactory has arrived outside of the US - an impressive milestone for the company.

Indeed, Tesla's VP of worldwide sales Robin Ren seems to agree with that sentiment. "Securing this site in Shanghai, Tesla’s first Gigafactory outside of the United States, is an important milestone for what will be our next advanced, sustainably developed manufacturing site," Ren said in a statement.

The Wall Street Journal seems to have cleverly tracked down a listing for the land deal in question. Apparently, the transaction cost Tesla a whopping $140 million, but the long-term benefits will likely drastically outweigh the upfront costs.

The company's goal is to produce "up to" 500,000 cars per year at the factory by the "end of the decade." That's an extremely ambitious goal, and it's tough to say whether or not Tesla will be able to pull it off. However, it's possible that the EV maker has learned enough from its troubled Model 3 production cycle to carry that knowledge over to Chinese operations.

Regardless, we'll probably learn more about the development of this Gigafactory in the coming months and years.

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https://www.techspot.com/news/76977-tesla-has-reportedly-closed-deal-buy-210-acres.html

 

[psycros]

"Now, though, Tesla has reportedly bought a massive plot of land in the country -- 210 acres in total -- with the intention of building an entirely new Gigafactory. If Tesla does so, it'll be the first time a Gigafactory has arrived outside of the US - an impressive milestone for the company."

LOL love how everyone is spinning this to be about the Chinese market when we all know this is just standard offshoring of US jobs. Look for US Tesla manufacturing to be steadily scaled down over the next few years, with the blame going to "market forces".

 

[p51d007]

Moving offshore, to reduce the labor costs. With the population of around 1.5 BILLION people, and, the communist authority, they have a "built in" workforce of slave labor. Why else would so many companies, MOVE their production to China? How many stories have we seen, where people who work at some of these places, are basically slaves, stuck in bad conditions in a "dorm" room setting, doing nothing more than working and sleeping, paying them little or nothing.

 

[Eldritch]

Moving offshore, to reduce the labor costs. With the population of around 1.5 BILLION people, and, the communist authority, they have a "built in" workforce of slave labor. Why else would so many companies, MOVE their production to China? How many stories have we seen, where people who work at some of these places, are basically slaves, stuck in bad conditions in a "dorm" room setting, doing nothing more than working and sleeping, paying them little or nothing.

That is treason, Comrade. Off to the re-education camp with you!

Yeah labour and material cost is indeed the reason and they may make a 'Light' version of EVs with drastically reduced saftey features for China.

The main problem is the blatant and pervasive theft of technology by China. Look how all the major companies that went there had an alternative manufacturer with exactly same specs within 5-10 years. They go to the extent of granting local copyright to fakers and allowing them to sue foreign companies from whom they stole.

 

[johnsonlam.hk]

It's definitely the worse time going into China, China was panic and suffer from their own strategy of stealing technology from the west, and the economy is going down, and becoming more unstable, Tesla should stay in US or ask help in EU instead of China, or the investment will gone down the drain.

 

[iamcts]

I don't see a problem with opening up a factory in China so they can sell their cars to the Chinese people.

Tesla would really shoot themselves in the foot if they built the Gigafactory in the US, and then decided to shift production to China. It wouldn't make sense for Tesla to build the car in China, and then ship it to US customers, especially with the tariffs in place.

Spin it how you want, but the reality is that Tesla is expanding, growing, and scaling - which is a good thing for those wanting an EV in any part of the world.

 

[p51d007]

That is treason, Comrade. Off to the re-education camp with you!

Oh they wouldn't want me in a re-education camp...I'd cause too much trouble & they'd have to put me down LOL.