Tesla secures land for $2 billion Gigafactory in China

Tesla secures land for $2 billion Gigafactory in China

Here’s a spot of good news for Tesla, which has of late appeared in the news for the wrong reasons. The electric carmaker has signed an agreement with the Shanghai government for an 860,000 square metre plot of land to build its first overseas Gigafactory, Tesla said in a Chinese social media post on Wednesday, reported by Reuters.

This development marks a key step towards Tesla and Elon Musk’s goal of making cars locally in China for China. A trade war is currently ongoing between the world’s two largest economies, and tariffs imposed by Beijing on US-made goods including cars have caused the price of Tesla’s EVs to rise.

In July, Tesla signed a deal with Shanghai authorities to build its first factory outside the US, with annual capacity of 500,000 cars. The move to manufacture in China would double the size of Tesla’s output and help lower the price of its cars in the world’s largest auto market, which has a big appetite for both EVs and premium cars.

“Securing this site in Shanghai, Tesla’s first Gigafactory outside of the United States, is an important milestone for what will be our next advanced, sustainably developed manufacturing site,” said Robin Ren, Tesla’s VP of worldwide sales.

While Tesla did not mention the price it paid for the land, Reuters pointed out that the Shanghai Bureau of Planning and Land Resources said on Wednesday that a plot of land measuring 864,885 square metres had been sold at auction at a price of 973 million yuan ($140.51 million). Tesla, which started hiring for the new factory in August, had said that it would raise capital from Asian debt markets to fund the plant’s construction, which will cost around $2 billion.

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Danny Tan

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.



  • Semi-Value (Member) on Oct 19, 2018 at 4:57 pm

    kereta made in china….but price sama…the future really sucks

    Like or Dislike: Thumb up 7 Thumb down 3
    • John Minum Teh 8X on Oct 19, 2018 at 5:54 pm

      Pity Malaysia had 60 years of bad name and corruption. Otherwise, Tesla would have invested that money to open the factory in Malaysia.

      I hope now with a cleaner Government, more investments will come in like the 80s

      Like or Dislike: Thumb up 0 Thumb down 1
    • Buy a Proton. Oh wai…

      Like or Dislike: Thumb up 0 Thumb down 0
    • Mr. Octopus on Oct 20, 2018 at 11:38 am

      Not everything from China comes from alibaba….

      Like or Dislike: Thumb up 0 Thumb down 0
    • Baby Booming on Oct 20, 2018 at 10:21 pm

      Welcome to the future man. You choose to move on or go piss yourself off to the past

      Like or Dislike: Thumb up 0 Thumb down 0
  • Idea Saja on Oct 20, 2018 at 11:40 am

    Just wondering malaysia third national car why not partner with Tesla? EV have better future prospect.

    Like or Dislike: Thumb up 2 Thumb down 0
  • winners on Oct 21, 2018 at 4:03 pm

    He’s just asking for trouble. He will face very tough competition and undercutting from China’s own domestic manufacturers, not to mention copyright infringements. Time will tell.

    Like or Dislike: Thumb up 3 Thumb down 2
  • Lawrence on Oct 25, 2018 at 12:51 am

    Winners, not to worry, China, a WTO member, will do the right thing and let free trade prevail.
    Meanwhile, China ICV start-ups:
    Pay close attention to how it is done.

    Like or Dislike: Thumb up 0 Thumb down 0

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