It looks like Tesla will bolster production of the Tesla Model 3 and start production of the new Model Y at their upcoming new plant in Shanghai.

Tesla is making capital gains in acquiring land for its upcoming overseas Gigafactory, playing the long game. As per Reuters on their report on documents filed with an environmental assessment firm earlier this week (Oct. 24,2018) it looks like both the Tesla Model 3 and upcoming Tesla Model Y will be produced at the yet to be built Shanghai Gigafactory, the first factories of its size from Tesla built outside of the United States. This comes off the heels of Tesla acquiring more than 860,000 square meters of land just last week at $2 Billion.

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Coinciding with that news, a local YouTuber was able to check out the site for himself. Here’s a video of just how large the site is and how industrialized the area is, to begin with.

I’ve uploaded a map of where generally this plot of land is. Generally located in the harbor city of Shanghai, this plot of land is built on one of eleven Free-Trade Zones in China whose main purpose is to attract foreign investment thanks to incentives like, “taxcustoms clearance, international trading center benefits and industry-specific liberalizations”

Such an investment is an important step both for Tesla and the Chinese government as this is proof of concept that their FTZ’s are working.

Tesla is in the news as of late as they are on the cusp of posting their first operating profit which will be the first time they’ve done so since 2016. This is specifically because of the push Musk exerted to up production of the Tesla Model 3 despite naysayers to the contrary that they couldn’t reach 5,000 Model 3’s a week.

With large investments like this new Shanghai factory, Tesla is doing its best to stay afloat while these supposed economies of scale kick in. With a cheaper labor force and exponentially increasing production of the Model 3 while starting production of the Model Y, Tesla is banking on the popularity of the crossover to really drive those profits literally home.

Source: Reuters


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