Tesla started construction of the Shanghai factory, and the new investment provision also affected competitors
Shanghai
January 16, 2019
US electric vehicle Tesla
On January 7, we began construction of the new factory “Giga Factory” in Shanghai Lingang Industrial Zone.
It plans to produce 500,000 EV vehicles a year at its factory’s first factory outside the United States.
Giga Factory’s total investment amounted to 50 billion yuan (about 800 billion yen, 1 yuan = about 16 yen)
Tosra agreed with the Shanghai government in the construction of a new factory in July 2018 Aiming to operate the factory in the second half of 2019.
Two models to be produced are “Model 3” and “Model Y”
In the first term, we first assemble the cheapest “Model 3”, aiming to produce 250,000 a year.
Production expenses are greatly cut by producing in China,
It also leads to reductions in parts procurement costs and labor costs,
The selling price will be cheaper by about one third compared to US imports.
– JETRO
https://www.jetro.go.jp/biznews/2019/01/37edf701821e982c.html