Tesla to produce cheaper versions of Model 3 electric cars in Shanghai, taking the competition to would-be ‘Tesla killers’
- Construction of its Gigafactory 3 takes off three months after it secured land site in Shanghai
- Factory will produce 500,000 cars annually when in full operation
Tesla has got off to a quick start to build affordable cars for Chinese customers after the US’ bestselling electric carmaker broke ground for its Shanghai plant on Monday with chief executive Elon Musk announcing the plan to start production of its Model 3 by the end of 2019.
The speed in which the US$5 billion project has taken off underscores China’s pressing need to bring to bear mega foreign invested projects as the country grapples with its slowest economic growth in a decade.
Construction begins just three months after Tesla secured a land parcel at Lingang, Shanghai for the Gigafactory 3, its first plant outside the United States.
The factory in Shanghai will produce “affordable versions of 3/Y for Greater China,” Musk said on Twitter before the groundbreaking ceremony, adding that higher-priced models would be built in the US.
Wu Qing, a vice mayor of Shanghai, said the Tesla factory, the largest foreign direct investment project on record in Shanghai, was progressing on a rapid pace with the local government’s support as Shanghai looked to enhance its manufacturing might.
Gigafactory 3 was expected to produce around 3,000 Model 3 vehicles a week in the initial phase, ramping up to 500,000 vehicles per year when it became fully operational, Tesla said in a statement.