Today is no exception. On Tuesday, July 10, Tesla disclosed that it is planning to build a brand new plant. This time, the plant will be in China.
Tesla China Factory: Meet Gigafactory 3
In an email statement, a Tesla spokesperson revealed Tuesday that Tesla will be building a new plant in Shanghai, after signing a Cooperative Agreement allowing it to do so.
The new Tesla plant is called Gigafactory 3.
Tesla China Factory: The Details
According to the Tesla spokesperson, construction of Gigafactory 3 will start “in the near-future.” Whether that means towards the end of 2018, or in the middle of 2019, is unclear.
However, we do know that in order for construction to begin, the Palo Alto-based company will have to receive “all the necessary approvals and permits.”
Here’s what else we know:
- It is expected to be around 2 years before Tesla starts producing vehicles at Gigafactory 3.
- It will be an additional 2-3 years before the Tesla China factory is “fully ramped up.”
The Future is Bright
It’s going to take a while for the new Tesla China factory to get going, but that’s OK. In fact, it will be well worth the wait.
According to Tesla, Gigafactory 3 is expected to be able to produce 500,000 vehicles, every year, for customers in China.
How is the Market Reacting?
Looks like the Tesla stock (NASDAQ:TSLA) is doing reasonably well today.
According to Google Finance, at 1:33 p.m. EDT, Tesla was up 0.96%.
Tesla China Factory: The Takeaway
What do you think about the news of the Tesla China factory? Do you think building a new Tesla plant is the best move for the company, considering Tesla has yet to make a profit, despite its IPO being 8 years ago?
Let us know in the comments below.
Featured Image: twitter