Musk Urges Chinese Consumers to Buy Model 3 Now to Fund Factory

Matthew DeBord  Business Insider

While Tesla has been forced to reduce prices in China over the past year because of the US-China trade war, the company still has high hopes for the Middle Kingdom. It also comes on the back of Tesla's ability to ramp up production of Model 3 sedans, marking the beginning of a turn in market sentiment.

With the ownership restriction removed, Tesla became the first foreign carmaker to set up a wholly-owned new-energy vehicle (NEV) factory in the mainland.

Musk had hinted recently at an upcoming Shanghai trip to break ground for the plant but Monday's event was not publicly announced until the Tesla CEO broke the news in a series of tweets earlier in the day.

Tesla plans to produce its Model 3 and Model Y cars in the initial phase of production at the Shanghai plant, with an annual capacity of 250,000 vehicles.

Tesla unveiled its first Gigafactory in 2016, which was initially a "tent" production facility in the Nevada desert.

Tesla (TSLA) has broken ground on a Shanghai, China, factory - the first plant outside the US for the electric auto manufacturer.

The so-called Gigafactory would also be China's first wholly foreign-owned vehicle plant, a reflection of China's broader shift to open up its auto market even amid a whipsawing trade war between Washington and Beijing.

Avengers Endgame: Fan Art imagines Hawkeye armoured up as Ronin
Plus, the Earth-bound part of the film with Danvers teaming up with a de-aged Nick Fury looks increasingly like a buddy movie. All eyes are on Brie Larson if she can amp up the already incredibly amped Marvel Cinematic Universe with Captain Marvel .

Julia Goerges once more wins ASB Traditional girls's singles
However Goerges made the most of her fresh start, fighting hard for a break of serve before sending the contest to a decider. Two games later and the title was Goerges' once more, yet again giving her the ideal lead-in to the looming Australian Open.

Special North Korean train reportedly crosses Chinese border
Kim's regime, however, has been bogged down by worldwide sanctions caused by past nuclear and missile tests. Diplomatic progress between Mr Trump and Mr Kim has stalled since the Singapore summit.

"Affordable cars must be made on same continent as customers", Musk tweeted on Monday. China remains the world's largest market for vehicles, particularly green ones.

China is the largest market for electric vehicles, and most forecasters predict EV sales in the country will accelerate rapidly as the government drives toward a goal of 100 per cent electric vehicles by 2030. A key China PMI index fell below 50 in December to its lowest reading since May 2017, signaling weakening demand in the $12.2 trillion economy.

Higher-priced models will be built in the United States for export to China, Musk said.

"We think with the resources here we can build the Shanghai Gigafactory in record time and we're looking forward to hopefully having some initial production of the Model 3 towards the end of this year and achieving volume production next year", Musk said at the ground breaking ceremony.

China typically requires foreign automakers to forge joint ventures with domestic firms when establishing manufacturing plants, which means sharing profits and technology with local partners. He provided no price figures for China-made cars.

Tesla purchased the land for the Shanghai factory just outside the city for approximately $140 million in October.

Related news:

Hot News

isis-killer-beheading-video-story-top Hammer attack at Chinese primary school leaves 20 children injured
Jan 08, 2019 - 20:34
Violent crime is rare in China but there has been a series of knife and axe attacks in recent years, many targeting children. In October, a 39-year-old woman stormed a kindergarten in Chongqing, southwest China, injuring 14 kids with a kitchen knife.

isis-killer-beheading-video-story-top Al Washington heading to Ohio State
Jan 08, 2019 - 19:16
In another shake up on the defensive coaching staff, Day has promoted defensive line coach Larry Johnson to associate head coach. The Buckeyes defense looked pathetic at times this year, and there's no excuse for that with the talent OSU has on the roster.

isis-killer-beheading-video-story-top HTC announces Vive Pro Eye, Vive Cosmos
Jan 08, 2019 - 17:57
The last one is important for people using laptops to run their VR experience as the practice burns through battery life. It's ambiguous, to say the least, but I'll update this article with more information once I've heard back from HTC .

isis-killer-beheading-video-story-top Facebook Shuts Down Page ‘Exposing’ The Singer’s Accusers — SurvivingRKelly
Jan 08, 2019 - 17:31
Regardless of the very serious accusations against him, Kelly has repeatedly denied everything! Like so many #MeToo monsters, R. I mean, I have seen the scars on women's wrists where they attempted to kill themselves after relationships with R.

isis-killer-beheading-video-story-top Radio calls of Cody Parkey’s missed field goal is absolutely heartbreaking
Jan 08, 2019 - 16:00
The Eagles coach knew Parkey had a patchy record during the season, having missed 10 kicks at goal earlier in the campaign. Eleven months later, we got another reminder of why the relationship between this coach and quarterback is so special.

isis-killer-beheading-video-story-top Fans Were Displeased With Kendall Jenner's "Raw, Moving" Announcement
Jan 08, 2019 - 14:12
On Sunday night, Kendall announced that she would be working with Proactiv , and sharing her story about her experience with acne. I can connect with you", she added. "I can connect with you", before the words "Connect with Kendall " flashed across the screen.

isis-killer-beheading-video-story-top ESPN unveils expanded MegaCast for National Championship game
Jan 08, 2019 - 10:34
Lawrence threw for 347 yards and three touchdowns, and Tagovailoa was replaced by Jalen Hurts in the fourth quarter. Scrambling Alabama quarterback Tua Tagovailoa is surrounded by Clemson defenders during the first half Monday.

isis-killer-beheading-video-story-top Sara Ali Khan’s photos with Simmba team is unmissable, check it out
Jan 08, 2019 - 10:16
In " Simmba ", Ajay Devgn made a cameo appearance in his popular role of " Singham " to rescue " Simmba " from villains. In a photo Deepika could be seen blessing the Simmba trio - Rohit, Ranveer and producer Karan Johar .

isis-killer-beheading-video-story-top Hiring surges in December, US unemployment at 3.9 percent
Jan 08, 2019 - 10:15
But the December jobs news helped prompt a rebound on Wall Street, with all three major indices rallying after Thursday's rout. The post December Jobs Report: The Labor Market Is Telling Everyone Not to Panic appeared first on Indeed Hiring Lab .

isis-killer-beheading-video-story-top Manchester City's Fernandinho warns Liverpool the pressure will only increase
Jan 08, 2019 - 10:08
If we lose the next one this doesn't mean anything. "The performance was beyond anything I've ever witnessed today". After after the break, Leroy Sane's shot cannoned off the other post of the same goal and went in for the victor .

isis-killer-beheading-video-story-top Titans’ Matt LaFleur to coach Packers
Jan 08, 2019 - 09:13
Citing a source, Rapoport says the Packers hired former Tennessee Titans offensive coordinator Matt LaFleur. LaFleur's younger brother, Mike, serves as the 49ers' wide receivers coach and passing game coordinator.

isis-killer-beheading-video-story-top World Bank President Abruptly Resigns
Jan 08, 2019 - 08:29
The World Bank committed almost $US64 billion in loans to developing countries in the fiscal year ended June 30 last year. Kim was previously president of Dartmouth College and head of the HIV/AIDS department at the World Health Organization.

isis-killer-beheading-video-story-top Disneyland hikes ticket prices again--cheapest daily fee over $100
Jan 08, 2019 - 07:37
Disneyland has been experimenting with ticket pricing to spread attendance from peak periods to slower times of the year. Discounts will be available for multi-day purchases, military personnel and Southern California residents .

isis-killer-beheading-video-story-top PM Modi, Trump discuss trade deficit, Afghanistan in phone call
Jan 08, 2019 - 06:19
Vivek Oberoi took to Twitter by sharing the first look of the movie and captioned it in Hindi, Tamil and Telugu as, "जय हिन्द". The biopic is expected to go on floors this month and will be shot extensively in Gujarat.

isis-killer-beheading-video-story-top China Pushes For Reunification With Taiwan
Jan 08, 2019 - 04:07
A DPP schism in the run-up to 2020 could favour the Kuomintang, the pro-Beijing party that was turfed out two years ago. A total of 34,230 votes were cast, representing a turnout of 16.9 percent, the party said.