Tesla bought land in China for $ 2 billion for a new Gigafactory

Tesla bought land in China for $ 2 billion for a new Gigafactory

October 18, 2018 0 By autotimesnews

The American company will build a new plant in China, which will be able to produce up to half a million electric cars every year.

The company Tesla Motors has agreed with the Shanghai government to purchase a land plot for building a new plant for the production of electric cars and batteries – Gigafactory 3. The transaction amount is estimated at 953 million yuan (140 million dollars), and the company itself will invest about two billion dollars, reports Reuters.

The plant will be built on an area of ‚Äč‚Äčabout 95 hectares, located near Shanghai. The company will allow Tesla to strengthen its position in the fast-growing electric car market and reduce the price of cars, since at the moment the company has to pay high duties for electric cars imported from the United States. The planned production capacity of the new Gigafactory will be about half a million cars a year.

From January to September, 721 thousand electric cars were sold to the PRC, which is 81% more than last year.

The Chinese authorities for several years in every way contribute to the development of the domestic market for electric cars for the sake of a very difficult environmental situation in large cities. In addition, the government supports local producers so that they can compete with foreign companies.