Elon Musk breaks ground on new Tesla factory in Shanghai
Rev your (electric) engines.
Elon Musk joined Chinese officials to break ground on a brand spankin' new Tesla factory in Shanghai Monday. The 'Gigafactory 3' in Shanghai will produce Model 3 and upcoming Model Y Teslas sold in China.
Also beginning Monday, Chinese customers will be able to configure and order their Model 3s on Tesla's Chinese website.
The factory, the new ordering capability, and Musk's emphasis on expanding the electric car market in China shows that Tesla is at least attempting to move into China in a big way.
"China is becoming the global leader in electric vehicle adoption, and it is a market that is critical to Tesla’s mission to accelerate the world’s transition to sustainable energy,” Musk said, according to a company release. "Gigafactory 3 is another example of Tesla’s commitment to the China market."
Tesla is on track to become America's premium automotive company, ahead of brands like Mercedes Benz and BMW, according to Forbes. Given the Chinese market's ravenous interest in luxury brands, Tesla's expansion may find an eager audience.
Tesla reached an agreement for the factory with Shanghai officials in July 2018, though plans had officially been in the works since late 2017. Against the backdrop of Trump's 2018 trade war, consolidating manufacturing for Chinese customers in China appeared to also have the benefit of avoiding higher tariffs on Chinese exports.
In true Muskian fashion, it's not enough to just have a car manufacturing plant — the factory itself has a brand identity: the Gigafactory. This is Gigafactory 3; the first is outside of Reno, NV, and the second is in Buffalo, NY.
So what the heck is a "Gigafactory"?
In addition to producing cars, Tesla also produces large-scale batteries and solar tiles. Gigafactories not only produce those batteries, they're also powered by them. Think of it as one fossil-fuel-free Tesla ouroboros.
Despite the fanfare around the new Shanghai location, Tesla factories have been a site of many problems for the electric car company. Tesla fell behind on its lofty manufacturing and delivery promises for Model 3, causing volatile stock prices and even prompting Musk to sleep at the Tesla factory.
Will things be different in China? Has Musk learned his lesson about ambitious timelines when it comes to manufacturing?
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Musk tweeted that he is estimating construction to finish this summer, with manufacturing ramping up in 2020.
Reasonable — or Muskian? Only time will tell.
CORRECTION: Jan. 7, 2019, 3:30 p.m. PST
A previous version of this article stated that Tesla officially announced plans for the factory in July 2018. In fact, Elon Musk confirmed plans for the factory in November 2017 on a call with investors. The article has been corrected to reflect this.
