Tesla CEO Elon Musk concluded a major agreement with the Chinese government yesterday (July 10, 2018) to build a new car factory in Shanghai, its first factory outside of the United States of America. Indeed, it is estimated that with this move, a company will double the number of world-wide production of electric vehicles manufactured by the company.
The agreement was announced as the car maker Tesla increased the prices of US vehicles it sells to China because of the sanctions imposed by the Chinese government in retaliation for the tough tariffs imposed by US President Donald Trump on Chinese products.
Following this grand deal, the Chinese government said it welcomed Tesla’s move to invest money not only at a new Shanghai factory but also in scientific technology research.
It is a fact that China has long struggled to attract great talents in technology and capital for investment in the automotive electric vehicle industry.
Tesla plans to build its first cars around two years after the construction of its new plant in Shanghai, increasing the annual production of vehicles to 500,000 units, but it is estimated that this figure will be achieved in about three years from now, company.
This would make the Tesla plant in Shanghai the largest automotive production vehicle where most factories are crafted to build from 200,000 to 300,000, a truly great feat that will change the hitherto up-to-date data in the sector where huge brands are operating long history.
After the publication of this important event, Tesla’s shares rose 1.5 percent on the US stock market, although some financial analysts believe the company will waste enough money to build such a large factory, that is, others see the glass half a dozen and others quite the opposite.
Tesla said yesterday’s agreement would not affect US company’s car production capacity, which continues to grow.