Tesla Breaks Ground on Factory in China
Tesla Inc. has broken ground at the site of its planned vehicle assembly plant in Shanghai, the company’s first factory outside the U.S.
The carmaker aims to finish initial construction of the $2 billion facility this summer and launch production of entry-level versions of its Model 3 electric sedan there by year-end, which is several months sooner than previously planned. The plant also will produce Tesla’s upcoming Model Y electric crossover.
Combined annual capacity of the two models will be 250,000 units initially. Output eventually is expected to be doubled to 500,000 units.
Tesla is accelerating construction of the facility, which was announced last July, amid ongoing trade tensions between China and the U.S. Last year Tesla’s sales in China plunged from more than 3,500 units in June to just over 200 in October due to the 40% tariffs China imposed on imported cars.
Higher-priced versions of the Model 3 and Model Y will be sourced from the U.S. Tesla also will continue to ship its top-end Model S sedan and Model X crossover vehicle to China from the U.S.
Paul Spadafora, chief engineer, Cadillac XT5, had, in his estimation, a fantastic opportunity as he and his team set about to develop Cadillac’s all-new midsize crossover vehicle for a number of reasons, one of which is the simple fact that this is one of the hottest segments going in the auto industry, so if you want to be in the game, you have to play hard against the likes of the Audi Q5 and the Mercedes GLE-Class.
Magna is an automotive supplier. But it is a Tier One supplier unlike many others.
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