A recent research found that the construction of Tesla
Gigafactory 3 is going pretty well in Shanghai. Currently, the engineering
construction of the factory is coming to an end, with the installation of
production equipment following at the next stage, according to Ma Chunlei, the
Deputy Secretary General of Shanghai Municipal People's Government and Director
of Shanghai Development and Reform Commission, who announced the news at the
Information Office of the State Council on July 2, 2019.
Mr Ma also expressed that Tesla Gigafactory 3 is ready
to go into production by the end of this year, with the estimated production
capacity of 3,000 vehicles per week. It is believed that the Tesla Model 3 made
in Shanghai, China might be soon on the market probably at the end of this year
or at the beginning of next year.
Tesla
Gigafactory 3 is Shanghai‘s largest foreign project in the manufacturing
industry since reform and opening
It is reported that the total investment of Tesla
Gigafactory 3 in Shanghai reaches USD7, 268,498,000 (RMB50 billion). According
to Mr Ma, the first phase of the project costs USD2, 035,179,440 (RMB14
billion). About 150 thousand new energy pure electric vehicles (Model 3) can be
produced.
The project of Tesla Gigafactory 3 in Shanghai has
drawn a lot of attention for the sake of the fact that it has been moving forward
at the top speed. The contract of the project was officially signed in July
last year. Just 3 months later, Tesla and the land bureau of Shanghai signed a
contract for assignment of the right to the use of land. Besides, only 5 months
were spent on the process of examination and approval. It was not until July 1
this year that the construction of Tesla Gigafactory 3 began.
Tesla Gigafactory 3 covers a total area of 860
thousand square meters, with main functions of R&D, manufacture and sales
in new energy pure electric vehicles. It is estimated that the annual capacity
of Tesla can get to 500 thousand vehicles, including Model 3. With the nationalization,
prices of Model 3 are predicted to drop by more than 40%.
At the press, Mr Ma concluded that Tesla Gigafactory 3
is the largest foreign-owned manufacturing project in Shanghai since reform and
opening in China.
Tesla
considers China as the largest target market
According to official statistics, the sales volume of
Tesla in Chinese market broke through USD2 billion in 2017, with a year-on-year
growth of over 90%. This makes China the biggest market of Tesla outside of the
USA.
Elon Musk, CEO of Tesla, once said that electric
vehicles have a huge market. In China, electronic vehicles occupy a small
percentage in auto markets, which creates a huge opportunity for auto
enterprises.
It is of a great symbol for Tesla to become the first
exclusively foreign-owned enterprise with its own factory that gets the
approval in China. As the latest data shows, in the first 11 months of 2018,
102 foreign manufacturing projects were introduced in total in Shanghai, with a
year-on-year growth of 67.2%.
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