Tesla secures land for its Gigafactory in China for $2 billion

19 Oct 2018_campuscad

Reuters reported Tesla Inc. signed a land deal with Shanghai government and secured a plot valued at $140 million, but to built the Gigafactory, Tesla would be raising $2 billion .

Plot will be approximately 860,000 square meters and help Tesla to set up the second Gigafactory outside the US.

Tesla will be able to produce another 500000 cars per year at Shanghai plant within 3 years of setup and operations.

China is the World’s largest Electric Vehicle (EV) market with maximum subsidy provided by the government to buy New Energy Vehicles.

China sold more than 373000 EV’s alone till month of June in 2018 and expect to sell a million by the end of the year..Amazon ad

Tesla Model 3 price tag up by 20% in the mainland China amid the ongoing tariff war between US and China. China imposes tariff on $35 billion worth US goods in retaliation to $200 billion tariff imposed by US on China imports.

Tesla first Gigafactory is in Nevada, United States where lithium Ion battery packs are manufactured for Tesla vehicles.

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