Tesla to Invest $188 Million to Expand Shanghai Factory Capacity

tesla-to-invest-$188-million-to-expand-shanghai-factory-capacity 

Tesla is expanding the production of its Shanghai factory and plans to invest up to $187.91 million (1.2 billion yuan) at its Shanghai factory. Even though it had a rocky start in China at the beginning of the year, the electric vehicle giant is amping its investment in the Asian country.

According to the state-backed Beijing Daily newspaper, Tesla is looking to expand its production in its Shanghai factory from December to April next year. Reuters reported that the Chinese daily backed the information on documents filed by Tesla with the Shanghai government.

Tesla seems optimistic with its Shanghai-based factory. Recently Elon Musk stated that the factory was producing more cars than its factory in Fremont, California. He added that the factory produced the best quality units at a low cost and low drama.

Tesla hit a new sales high in October in China outpacing its local competitors in the Asian market. The electric vehicle giant shipped about 56,000 vehicles from its Shanghai plant that according to the China Passenger Car Association (CPCA), were for the domestic market.

CPCA in September also reported that Tesla exported a little over 3,800 Chinese-made units, a dramatic decline from the 31,379 out of 44,264 units it exported in August to the European market. Bloomberg reported that the drop in exports is a pattern of the U.S electric car company prioritizing overseas exports in the first half of the quarter.

According to CNBC, Musk, through a virtual conference in September, had promised to continue expanding R&D investment in China.

Tesla is also making expansions in other locations including, Berlin, Germany, and Austin, Texas. The electric vehicle company is planning to spend at least $1.06 billion on the Texas Gigafactory. It hopes to complete it by the end of the year, CNBC reported.

The Tesla move in China comes at a time the Chinese government has made plans to allow foreign companies to set up their facilities in the country.