Tesla to produce cars in China

January  7, 2019 | Investopaper

Tesla CEO Elon Musk tweeted on Monday that the company was breaking ground on Shanghai Gigafactory.

Recently, the sales of the Tesla cars has reduced in China after it imposed a whooping 40% import-tariff on imported US cars last July. But the tariff has reduced to 15 percent after ceasefire to the trade war was announced.

Tesla will start making Model 3 electric vehicles in Shanghai by the year end. The factory will be constructed at  around $2 billion.It is Tesla’s first non-US based factory that will help to strengthen its position in the world’s biggest auto-market,China.

Musk, through another tweet said that  affordable cars must be made on same continent as customers. He further stated that Shanghai Giga will produce low-cost versions of 3/Y cars for China and high cost version of the same car will be built in US and made available for worldwide market.

Tesla stock closing price on January 4 stands at $317.69 which increased by 5.77% than previous day closing.



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