Tesla's new progress in localization: $145 million to purchase factory land

Tesla is reportedly seeking land for its Shanghai factory, which is said to be worth $ 145 million. Tesla is the only bidder for the land and could complete the deal as early as this month.

If this transaction is successfully completed, Tesla will build a factory with an annual production capacity of 500,000 vehicles on this land, and Tesla's localization process will be further advanced.

Building a factory in Shanghai and realizing localized production is an important measure for Tesla to enter the Chinese market. At present, the trade dispute between China and the United States has caused Tesla to face a 40% tariff on imports into China. Unlike many other foreign automakers, Tesla has not established a cooperative relationship with Chinese automakers. Due to tariffs and transportation costs, Tesla's operating costs in China are currently about 55% higher than local production in China .

After achieving localized production, Tesla will be able to significantly reduce its sales prices in China, thereby improving its competitiveness and market share in China.

Musk estimates that the Shanghai factory will require an investment of about $ 2 billion to achieve an annual production capacity of 250,000 cars , and the first car is expected to roll off the production line within three years. Musk said that the construction funds for the Shanghai factory will be loans provided by local Chinese banks. Although the factory has not yet started construction, related recruitment work has started in August .

On May 10 this year , Tesla ( Shanghai ) Co., Ltd. obtained a business license issued by the Shanghai Pudong New Area Market Supervision Bureau, with a registered capital of 100 million yuan and its shareholder is Tesla Motors Hong Kong Co., Ltd.

On September 7 , the registered capital of Tesla ( Shanghai ) Co., Ltd. has increased from 100 million yuan to 4.67 billion yuan. The business scope has been further expanded to the manufacturing of key parts for new energy vehicles such as battery management systems, motor management systems, electric vehicle electronic control integration, and electric vehicle drive motors.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.