Tesla set to produce electric cars in Shanghai after confirming factory

By Sean Galea-Pace
US-based company Tesla has announced that it has agreed a deal to construct a factory to produce its electric cars in China. Tesla confirmed that it an...

US-based company Tesla has announced that it has agreed a deal to construct a factory to produce its electric cars in China.

Tesla confirmed that it anticipates construction to commence “in the near future, after we get all the necessary approvals and permits”.

It will take approximately two years before Tesla can begin to make cars followed by another two to three years before the factory fulfils its capacity of 500,000 vehicles.

On Tuesday morning, shares of the company had risen 2%.

“It is always interesting to see how the shares react," CFRA analyst Efraim Levy told CNBC. "A lot of times it seems news is good news for them”.

Tesla revealed in a statement that it was “deeply committed to the Chinese market and looked forward to building even more cars for its customers there”.

See more:

Ahead of the announcement on Tuesday, a large number of Wall Street members anticipated that Tesla must raise capital in the near future. Levy also confirmed that apart from new obligations in China, Tesla will still be left to raise $2-3bn as an operational cushion during the first quarter of 2019.

In the last few days, the automaker has raised prices to 20% in the country in response to import tariffs.

The US inflicted tariffs on $34bn of Chinese products which prompted China to set their own taxes on a number of different US products, including cars.

The trade dispute has intensified further after BBC News reported on Wednesday that the US has listed $200bn worth of additional products that are set to be taxed as early as September.

 

 

 

Share

Featured Articles

Microsoft’s Çağlayan Arkan explores the supply chain

Çağlayan Arkan, Microsoft’s VP Global Strategy & Sales Lead for Manufacturing & Supply Chain, gives his take on digital factories and ‘the art of possible’

Elisabeth Brinton on the Microsoft Cloud for Sustainability

Microsoft’s Elisabeth Brinton discusses the Microsoft Cloud for Sustainability programme & how manufacturers are being supported by their new technology

Aiimi’s Head of Solution Engineering Matt Eustace on risks

Aiimi utilises AI to provide businesses insights that eliminate risks ‒ including how to manage sanctioned individuals in your supply chain

5 minutes with Nicolai Peitersen, co-founder of Wikifactory

Procurement & Supply Chain

Three steps to building a resilient enterprise ecosystem

Procurement & Supply Chain

Chocolate manufacturer Venchi on sustainable packaging

Procurement & Supply Chain