Tesla’s Gigafactory 3 in China has delivered 15 units of the Model 3 to the company’s workers on Monday. Although it took six years since CEO Elon Musk publicized his plans for Chinese-Made Teslas, the production will still be very profitable for the automaker, as they won’t have to pay steep tariffs on imports.
The automaker has big plans for China. First off, they want to increase production to 3,000 vehicles per week and eventually meet their annual goal of developing 500,000 cars in Gigafactory 3. The upcoming Model Y will also be produced here alongside Tesla batteries.
There is one very important thing about this production plant in Shanghai. It is fully owned by Tesla. Previously, anyone coming to the country had to create a 50:50 joint venture. Tesla also plans to build another plant in Germany, which will start working sometime next year.
With the Chinese-Made Teslas development underway, the automaker doesn’t have to fret about the U.S.-China trade war. The Model 3 is already doing well in China, and the new plant will make it easier for the company to meet its delivery targets.
This news is positive for Tesla shares’ price, which has been improving since the automaker posted a third-quarter profit in October 2019.
Source and Images: MotorAuthority