Tesla builds assembly plant in China
- The Californian manufacturer of electric cars Tesla (based in Fremont, Silicon Valley) confirmed that they are building an assembly plant in Shanghai, without creating a partnership with a Chinese manufacturer, as is most often the custom in China.
- The announcement comes at a time when the automaker is struggling to meet demand for its new Model 3, which would help Tesla move from small-scale production to large-scale production.
- Tesla had to postpone its goal of achieving a production rate of 5,000 Model 3 per week to the end of the first quarter of 2018, whereas up to now it had expected to reach this point by the end of the fourth quarter of 2017.
- These difficulties have no influence upon the global strategy of the Tesla brand which wishes to expand its activities to regions other than the United States (Fremont) or Europe (Tilburg). The third Tesla assembly site will be located in Shanghai (where GM and VW are already present through the Chinese manufacturer SAIC) which will supply the entire Chinese market.
- Start of production is planned for 2020. The intention of the manufacturer is to produce the Model 3 (this is the cheapest model of the brand), which would avoid importing it in large quantities from the United States.
- Tesla is thus responding to the recommendations of the Chinese government which push for a high percentage of electric vehicles in their domestic market.
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