Elon Musk’s electric car company, Tesla, says it is expanding its business in China while building a new factory to make large-scale batteries.
According to the company, the Shanghai plant can produce 10,000 “megapack” energy storage devices per year.
Megapacks are very large batteries that help stabilize the power grid and prevent blackouts.
Tesla already has its Megapack factory in California, producing 10,000 units a year.
Musk said on Twitter that the new China factory would be in addition to Tesla’s U.S. factory.
According to Chinese state media Xinhua, construction work on the new Megapack factory in China is expected to begin this year, with battery production set to begin in the summer of 2024.
China is the largest producer of batteries that Tesla can use to boost production and cut costs.
The announcement comes as the US government urges US companies to reduce their dependence on China amid rising tensions between Beijing and Washington.
Last year, the Biden administration banned federally funded U.S. tech companies from building “high technology” facilities in China for a decade.
The guidelines were part of a $50 billion plan aimed at building the US semiconductor industry.
In August, Mr. Biden signed a bill allocating $280 billion for high-tech manufacturing and scientific research amid concerns the US would lose its technological lead over China.
In 2019, Tesla opened its first factory outside the United States in Shanghai. The factory now produces 22,000 vehicles per week. Tesla also makes cars near Berlin, Germany, and has announced plans to build another overseas factory in Monterrey, Mexico.
China, the world’s largest auto market, has experienced a sharp decline in car sales this year as its economy slows. Last month, Tesla slashed prices for models made at its Shanghai factory. It faced an order backlog of unsold vehicles and fierce domestic competition.
About Tesla :
Tesla, Inc. is an American multinational automotive and energy company headquartered in Austin, Texas. Tesla designs and manufactures electric vehicles (electric cars and electric trucks), home-to-grid storage batteries, solar panels, solar roof tiles, and related products and services. Tesla is one of the world’s most valuable companies and will be the world’s most valuable automaker by 2023. In 2021, the company will be the world’s top seller of battery electric and plug-in electric vehicles, with 21% of the battery electric (pure electric) market and 14% of the plug-in market (including plug-in hybrids). Through its subsidiary Tesla Energy, the company designs and installs solar power systems in the United States. Tesla Energy is also one of the world’s largest providers of battery energy storage systems, with 3.99 gigawatt hours (GWh) in 2021.
Tesla was founded as Tesla Motors in July 2003 by Martin Eberhard and Mark Turpenning. The company’s name is a tribute to inventor and electrical engineer Nikola Tesla. In February 2004, Elon Musk invested $6.5 million to become the company’s largest shareholder. He has been CEO since 2008. According to Musk, Tesla’s aim is to accelerate the transition to sustainable transportation and energy harvesting with electric vehicles and solar power. Tesla began production in 2008 with its first car model, the Roadster sports car. It was followed by the Model S sedan in 2012, the Model X SUV in 2015, the Model 3 sedan in 2017, the Model Y crossover in 2020 and the Tesla Semi truck in 2022. The company plans to resume production of light weight pickups. The 2023 Cybertruck Model 3 is the best-selling plug-in electric vehicle of all time, and in June 2021 it was the first electric vehicle to sell one million units worldwide. Tesla’s full-year 2022 deliveries were about 1.31 million,an increase of 40% year-over-year,bringing its cumulative sales in August 2022 to its 3 million. In October 2021, Tesla’s market capitalization reached its $1 trillion mark, making it the sixth company in US history.
Tesla has faced multiple lawsuits, government scrutiny and journalistic scrutiny stemming from CEO Elon Musk’s words and actions, retaliation against whistleblowers, violations of workers’ rights, and allegations of product defects. criticism, and the subject of public controversy.