Recent rumors have shown that Tesla is preparing to build another factory in China, however Elon Musk has said that this will not happen in near future. The head of the company clarified that Tesla plans to expand the existing facility of Giga Shanghai.
Tesla CEO Elon Musk said during an interview with the Financial Times that the company will expand its Giga Shanghai factory. He also explained that, although China is a very important market and will eventually account for 25-30% of its sales, Tesla does not plan to build new factories there in the near future, despite rumors circulating to the contrary. Musk said that, at the moment, the manufacturer is focused on ramping up production at Giga Texas and Giga Berlin.
“China is obviously a very significant market. It is probably 25% to 30% of our market long term,” he said. “We are not expecting to open any additional plants in China in the near future. We will be expanding our Shanghai factory. We are focused on Berlin and Texas and getting those to high-value production,” Musk continued.
In early May, Reuters obtained access to a letter that was sent by Giga Shanghai to the Shanghai government. According to the meaning conveyed, Tesla was going to build a new factory in China. This wording also allegedly confirmed information Reuters reported in February 2022, about the construction of another factory by a U.S. company in the country. However, Musk's new comments have finally cleared things up, eliminating the possibility that an altogether new factory will be built in China in the near future. On the other hand, we now know that Giga Shanghai will be expanded, which will significantly boost Tesla's production performance.
© 2022, Eva Fox | Tesmanian. All rights reserved.
We appreciate your readership! Please share your thoughts in the comment section below.