Tesla unveils Shanghai factory plans amid US-China trade row

Marcus Newton
July 16, 2018

The Thursday feature from Bloomberg focused primarily on Tesla's push to meet production demand for the Model 3, which starts at $35,000. It says production would begin three years after that and eventually increase to 500,000 vehicles annually.

Musk was in China to discuss the plan to build Tesla's second factory with an annual capacity to build 5 lakh cars.

The declining tax credit is seen as putting Tesla and GM at a disadvantage over newer entrants to the market, whose first 200,000 models will qualify for a full tax credit.

The plant, located in the Lingang district, "will be a state-of-the-art vehicle factory and a role model for sustainability".

Former Tesla employee Martin Tripp has filed a whistleblower tip with the Securities and Exchange Commission in which he alleges the company lied about Model 3 production numbers and put unsafe batteries in its cars, The Washington Post reports. "They will have to get capital".

For Tesla, speculation in recent weeks about whether Elon Musk's EV maker has or hasn't reached that figure was almost as ripe as whether it would be able to reach the 5,000-per-week Model 3 production target.

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Incidentally, Musk about a year ago said that Model 3 production should reach 10,000 units per week before the end of 2018.

The incentive program was established to help jump-start the electric auto industry by subsidizing the costs of developing new technologies in its early years.

Besides the import tariffs and the shipping costs Tesla effectively sidesteps by breaking ground in China, the EV maker also stands to save money in terms of sourcing, as many raw materials needed to build a Tesla, such as rare earth metals, are mined and processed for manufacture in China.

Fired Tesla employee Martin Tripp company was accused of defrauding investors and using risky batteries in the Assembly of electric vehicles. "But it will not be the same level of strain as getting to volume production of Model 3". "Incredibly impressed with Tesla China team & potential for the future", Musk further tweeted.

"Tesla is deeply committed to the Chinese market, and we look forward to building even more cars for our customers here", the company said in its emailed statement. Specifically, Musk said that the company relied too heavily upon automation, a decision Musk himself took responsibility for.

Other reports by MaliBehiribAe

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