Tesla turns over in China: they build a gigafactory in Shanghai

The presence of Tesla in China is about to increase significantly with an investment of 1.4 billion dollars in a gigafactory in Shanghai.

Elon Musk’s company prepares to make the big leap: we can see Tesla in China. The one that every manufacturer lends itself to at some point, when it looks to its maturity. Tesla will build a giant battery factory in China, specifically in Shanghai. It will be the first stone, at least the largest at the moment, of an expansion that began when the company allowed buyers of the Asian giant to reserve the Model 3.

Tesla’s first gigafactory in China, in collaboration with Panasonic, has given good results. After a substantial investment, the industrial complex produced 600 million battery cells in two years. A record for a pioneer plant, by dimensions and objectives.

In China, Tesla has a new goal. In this case it is about supplying the Asian giant market. The company sees in the country an immense fishing ground for its sales. As electric cars are sold and much there. The government has underpinned the new electricity market with incentives for consumption and with incentives for the establishment of charging points.

Tesla en China

China is a paid land and Tesla does not want to miss it. That is why it has raised $ 1.4 billion from Chinese banks. The main purpose: to build your gigafactory in Shanghai. Although the company will also expand its sales network.

The Shanghai is the fourth gigafactory of the company that has been announced, is under construction or exists. One is in the state of Nevada, another in Buffalo (New York state) and another near Berlin.

China, factory and market for electric

The Asian giant has been constituted over time in the main electric car market with a lot of difference. And is that in China cars are manufactured, now more and more, electric. The big brands are present in the country, which also has national manufacturers. Not only that. China is also a huge battery production center.

But the country has also managed to create a solid market for these vehicles. Tesla’s bet in China is highly risky because of the competitive environment. There are Chinese brands of some relevance that currently cover the sales of electric cars nationwide. But the demand is great. In the first ten months of 2018, sales almost doubled. An indicator of so many that serves to take the pulse of the sector, strongly encouraged by the government transport authorities.

Images: Tesla

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