Right after the car company was forced to raise the prices of its vehicles by at the least $20,000 each due to China’s increased import tariffs on American-made cars, Tesla announced it would open its first international factory in Shanghai.
This will ultimately allow the car manufacturer to circumvent the newly enforced taxes once completed.
Musk was in Shanghai on Tuesday attending a government event — although he did not previously disclose why he was there. Now, it’s safe to say that at the least part of the reason was that he was announcing this new factory.
A Tesla spokesperson told Mashable that the deal was signed today, which follows up on the company’s talks last year with the Shanghai Municipal Government to possibly prove a factory in the region.
“Today, we have signed a Cooperative Arrangement for Tesla to start structure Gigafactory 3, a brand-new electric vehicle inventing facility in Shanghai, ” a Tesla spokesperson told Mashable in a statement.
“We expect construction to begin in the near future, when we are get all the necessary approvals and permits. From there, it will take approximately two years until we start producing vehicles and then another two to three years before the factory is amply ramped up to produce around 500,000 vehicles per year for Chinese customers.”
The spokesperson said that the brand-new mill — the most significant foreign-invested manufacturing job in Shanghai — will not wallop Tesla’s manufacturing operations in the United States, which should continue to grow.
“It will be a state-of-the-art vehicle factory and a role model for sustainability, ” Elon Musk said in the statement released by the Shanghai Municipal People’s Government.
“We hope it will be completed very soon. We’ve been impressed by the beauty and energy of Shanghai and we want our factory to be included in that.”
This new facility will hopefully help Tesla meet its manufacturing aims in the years to come.