Tesla will break ground next month on a new factory in Shanghai — solidifying Elon Musk’s commitment to double production of electric vehicles in China, according to a report.
The new factory in China’s financial hub will enable Tesla to produce up to 2 million units annually, putting the electric vehicle maker on a par with legacy car manufacturers who have also set up operations in the Asian country, Reuters reports.
The Post has contacted Tesla seeking comment.
The plant is slated to be built near Tesla’s current factory, known as Gigafactory 3, in nearby Lingang.
Last year, Toyota facilities in China churned out 1.6 million cars while General Motors manufactured 1.4 million. Volkswagen hopes to ramp up capacity in China to 1 million electric vehicles by 2023.
Tesla currently is on track to produce 1 million cars, including the Model 3 sedan and the Model Y crossover, this year in China.
The company’s enlarged footprint in Shanghai can be traced to the welcoming business climate in the city.
Unlike other foreign auto manufacturers, Shanghai has exempted Tesla from partnering up with a domestic car maker, allowing Musk’s firm to completely own the facility which produces its products.
Tesla sales have surged in China and its Shanghai factory has become a crucial export hub to markets such as Germany and Japan.
Last year, Tesla’s China-made cars accounted for around half of the 936,000 vehicles it delivered globally, based on Reuters calculations using China Passenger Car Association data.
Tesla’s deepening ties to China have been criticized in the United States, particularly in light of alleged human rights abuses by the government in Beijing.
When Tesla recently opened up a showroom in Xinjiang province, Musk was accused of supporting genocide.
Chinese authorities have allegedly targeted Uyghur Muslims and other religious minority groups in Xinjiang as part of a crackdown the US government has labeled a genocide.
Beijing is accused of establishing internment camps and forced labor facilities in a brutal crackdown on religious and ethnic groups in Xinjiang. The Chinese government denies the allegations.
With Post wires