An aerial view of the Tesla Gigafactory 3 under construction in Lingang, Pudong New Area, Shanghai, China, June 24. Tesla is just months away from its aggressive goal of starting production at Gigafactory 3 in Shanghai in the fourth quater. Photo: AFP

Work is revving up on Tesla’s third “Gigafactory”, its first outside the US. Construction for the US$2 billion, 865,000-square-meter plant in Shanghai started earlier this month after a fanfare ground-breaking ceremony on January 7 attended by CEO Elon Musk, Shanghai’s mayor and other senior Chinese officials.

Tesla and Shanghai are wasting no time, with heavy machinery already at work. The city’s media say the first car, likely a Model 3, will roll off the production line in the fourth quarter of 2019.

One report in the city’s official Jiefang Daily bore the headline: “Watch Tesla’s Shanghai Gigafactory rise before our eyes within a year and you’d better not blink”.

The factory in Shanghai’s Pudong district is being built as Musk hits the accelerator pedal towards a broader market and reduced sticker prices on its sleek sedans powered by lithium ion batteries.

Musk told Chinese Premier Li Keqiang earlier this month in Zhongnanhai in Beijing that the Shanghai facility, the first car plant wholly-owned by a foreign investor, would produce affordable versions of the Model 3 as well as the upcoming Model Y compact SUVs. Tesla owns the Shanghai facility via a Hong Kong-based subsidiary.

Musk commented on Twitter after the ground-breaking ceremony that affordable cars “must be made on [the] same continent as customers”, adding that the Shanghai plant would be “the most advanced Tesla Gigafactory in the world…arguably one of the most advanced factories in the world of any kind.”

Tesla already runs five Tesla sales showrooms across Shanghai.

The US e-car giant’s timetable for the Shanghai Gigafactory is without precedent. It plans to finish initial construction by this summer, less than a year after Tesla inked a deal for the project with Shanghai in October 2018, and for its first high-tech sedans to roll off the production line before the end of the year.

The state-owned China State Construction Engineering Corp is the main contractor for the plant.

YouTube video

An aerial drone clip of Tesla’s Shanghai plant.

As well as an initial target production rate of 250,000 cars per year, the facility will also produce battery cells. Tesla aims to boost production to half a million cars a year by 2020, to help double its targeted production worldwide. Musk also aims for 500,000 vehicles per year from its Fremont plant in California.

Tesla has attracted support from Chinese leaders: local banks vied to give Tesla low-interest loans, the central and Shanghai governments aligned policies to ensure the huge factory’s rapid construction, and Tesla was able to secure the plot without facing rival bidders.

Join the Conversation


  1. Hello there I am so thrilled I found your web site, I really found you by error, while I was searching on Yahoo for something else, Regardless I am here now and would just like to say many thanks for a fantastic post and a all round interesting blog (I also love the theme/design), I don’t have time to read it all at the moment but I have bookmarked it and also added your RSS feeds, so when I have time I will be back to read a lot more, Please do keep up the superb work.

  2. Undeniably believe that which you said. Your favorite justification seemed to be on the internet the simplest thing to be aware of. I say to you, I definitely get irked while people consider worries that they just don’t know about. You managed to hit the nail upon the top and defined out the whole thing without having side effect , people could take a signal. Will probably be back to get more. Thanks

  3. Wow! This could be one particular of the most helpful blogs We have ever arrive across on this subject. Actually Wonderful. I’m also an expert in this topic therefore I can understand your effort.

  4. Hi there would you mind sharing which blog platform you’re using? I’m planning to start my own blog soon but I’m having a tough time deciding between BlogEngine/Wordpress/B2evolution and Drupal. The reason I ask is because your design seems different then most blogs and I’m looking for something unique. P.S Sorry for getting off-topic but I had to ask!

  5. Hello very cool blog!! Man .. Excellent .. Superb .. I will bookmark your website and take the feeds additionally?KI am satisfied to search out a lot of useful information here in the submit, we need develop more techniques on this regard, thank you for sharing. . . . . .

  6. Hello there, just became aware of your blog through Google, and found that it is really informative. I am gonna watch out for brussels. I will be grateful if you continue this in future. Many people will be benefited from your writing. Cheers!

  7. Generally I do not read article on blogs, but I wish to say that this write-up very forced me to try and do it! Your writing style has been surprised me. Thanks, quite nice article.

  8. You really make it appear really easy together with your presentation however I in finding this matter to be really something which I believe I would by no means understand. It seems too complex and extremely broad for me. I’m looking ahead to your subsequent submit, I will attempt to get the hold of it!

  9. It’s really a cool and helpful piece of information. I am happy that you shared this helpful info with us. Please stay us up to date like this. Thank you for sharing.

  10. Thanks, I have recently been looking for information about this topic for a long time and yours is the greatest I have found out till now. But, what about the conclusion? Are you certain concerning the source?

  11. Hiya, I’m really glad I have found this information. Today bloggers publish just about gossips and web and this is really annoying. A good blog with exciting content, this is what I need. Thank you for keeping this web-site, I’ll be visiting it. Do you do newsletters? Cant find it.

  12. Its wonderful as your other posts : D, regards for posting. “There’s no Walter Cronkite to give you the final word each evening.” by William Weld.

  13. Thanks , I have recently been looking for information approximately this topic for a long time and yours is the best I’ve found out so far. However, what in regards to the conclusion? Are you sure in regards to the supply?

  14. Having read this I thought it was very informative. I appreciate you taking the time and effort to put this article together. I once again find myself spending way to much time both reading and commenting. But so what, it was still worth it!

  15. I’m really impressed with your writing skills and also with the layout on your blog. Is this a paid theme or did you customize it yourself? Anyway keep up the nice quality writing, it is rare to see a nice blog like this one these days..

  16. It is truly a great and helpful piece of information. I¦m happy that you simply shared this useful information with us. Please stay us informed like this. Thank you for sharing.

Leave a comment