Tesla to build new EV battery factory in Shanghai

Tesla Inc. will build a new battery factory in Shanghai, increasing investment in China at a time of brewing tensions between Beijing and Washington.

By: Bloomberg
| Updated on: 09 Apr 2023, 17:05 PM
Follow us on:
Follow us on:
File photo used for representational purpose. (REUTERS)
File photo used for representational purpose.

Tesla will manufacture its Megapack large-scale energy-storage unit in the new facility, which adds to the its factory for electric vehicles in Shanghai. The company led by Elon Musk, who is said to visiting China this weekend, made the announcement at a signing ceremony for the project in Shanghai, the official Xinhua News Agency reported.

Construction is scheduled to begin in the third quarter of this year and the plant will commence production in the second quarter of 2024. Austin, Texas-based Tesla did not immediately respond to a request for comment outside of regular business hours.

Also check these Cars

Find more Cars
Tesla Model S (HT Auto photo)
₹70 Lakhs - 1 Cr* *Expected Price
View Details
It's Quiz Time ! Can you guess the Car Logos?
Tesla Model 3 (HT Auto photo)
₹70 - 90 Lakhs* *Expected Price
View Details
Mercedes-benz Eqe (HT Auto photo)
₹70 - 90 Lakhs* *Expected Price
View Details
Mercedes-benz Eqb (HT Auto photo)
₹74.5 Lakhs**Ex-showroom price
Add to compare
Check latest offers
Lexus Ux 300e (HT Auto photo)
₹75 - 85 Lakhs* *Expected Price
View Details

Also Read : Tesla faces lawsuit over alleged privacy intrusion. Here's what went wrong )

Tesla’s deepening China investment comes shortly after France’s Airbus SE announced plans to double its production capacity in the country for one of its top-selling jets. The European planemaker will add a second final assembly line for A320 narrow-bodies at its existing factory in Tianjin, under a deal signed by Chief Executive Officer Guillaume Faury in Beijing on Thursday.

The new manufacturing projects give a boost for Chinese industry as other firms like Apple Inc. rethink production in the nation amid heightened tensions with the US over everything from an alleged Chinese spy balloon being shot down over American skies to Beijing’s partnership with Russian President Vladimir Putin.

File photo used for representational purpose.
File photo used for representational purpose.
File photo used for representational purpose.
File photo used for representational purpose.

The Megapack is intended as a massive battery to help stabilize energy grids, with the company saying each unit can store enough energy to power an average of 3,600 homes for one hour. The new factory will initially produce 10,000 Megapacks every year, equal to around 40 GWh of energy storage, Xinhua said, adding the products will be sold worldwide. China, home to rising global electric vehicle star BYD Co., is an extremely important market for Tesla.

Also Read : Tesla cuts Model S and X prices for the third time this year )

Its existing car factory, which it owns outright, on the outskirts of Shanghai produced almost 711,000 cars last year, or 52% of the US electric-vehicle maker’s worldwide output — even with production being disrupted by the China’s now-abandoned Covid-Zero policy — and Musk has long benefited from his close ties to Beijing.

Authorities rolled out the red carpet to help Tesla set up its first plant outside the US in early 2019, and Shanghai government officials assisted the company with resuming production in a timely manner after pandemic-related disruptions. Musk’s time operating in China hasn’t been entirely smooth, however.

An expansion of the Shanghai EV plant was delayed over data concerns about Tesla’s connections to Musk’s internet-from-space initiative Starlink, people familiar with the matter said earlier this year, days after angry Tesla owners swarmed showrooms in China to complain about missing out on another round of price cuts.

Also Read : Tesla teases two new EVs; one could be the cheapest-ever from brand )

Tesla cars also were banned from Chinese military complexes and housing compounds in early 2021 over concerns about sensitive data being collected by cameras built into the vehicles.

Musk said on an earnings call in January that China is the most auto competitive market. He’s made similar comments before, including during an online forum in September 2021, when he said he had “a great deal of respect for the many Chinese automakers."

First Published Date: 09 Apr 2023, 17:05 PM IST
Recommended for you
View all
Shopping Bag Shop Now
55% OFF
SOFTSPUN Microfiber Cloth - 4 pcs - 40x40 cms - 340 GSM Grey- Thick Lint & Streak-Free Multipurpose Cloths - Automotive Microfibre Towels for Car Bike Cleaning Polishing Washing & Detailing…
Rs. 269 Rs. 604
19% OFF
Involve Your Senses One Musk Organic Car Perfume, Involve Your Senses Strong Fiber Air Freshener to Freshen'up Your Car - IONE01-40 g,Car Accessories interior car perfumes and fresheners
Rs. 324 Rs. 399
73% OFF
pTron Bullet Pro 36W PD Quick Charger, 3 Port Fast Car Charger Adapter - Compatible with All Smartphones & Tablets (Black)
Rs. 349 Rs. 1,299
13% OFF
Jopasu Car Duster
Rs. 755 Rs. 869

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
By clicking "View Offers" you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city