--FILE--A Tesla Model S electric car is on display at a store in Shanghai, China, 5 December 2018. Electric carmaker Tesla's first plant outside the

--FILE--A Tesla Model S electric car is on display at a store in Shanghai, China, 5 December 2018.   Electric carmaker Tesla's first plant outside the Stock Photo
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Contributor:

Imaginechina Limited / Alamy Stock Photo

Image ID:

W5TRYB

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34 MB (1.3 MB Compressed download)

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Dimensions:

4160 x 2854 px | 35.2 x 24.2 cm | 13.9 x 9.5 inches | 300dpi

Date taken:

5 December 2018

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Imaginechina

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--FILE--A Tesla Model S electric car is on display at a store in Shanghai, China, 5 December 2018. Electric carmaker Tesla's first plant outside the US, the Gigafactory 3 in Shanghai, is about to begin construction and partially start operating in the second half of 2019, one year ahead of its original plan, according to the official website of Shanghai Municipal Government, 21st Century Business Herald reports. The gigafactory, with a total investment of 50 billion yuan ($7.25 billion), will have a production capacity of 500, 000 units in two to three years. The first phase of the factory, with an initial investment of 16 billion yuan, targets 250, 000 units of Model 3 and Model Y electric vehicles annually. The CKD (completely knock down) plant will enable production as soon as possible, said the report. The plant, located in Shanghai's Lingang area, remains a critical step in Tesla's expansion. While China is the second-largest market of Tesla outside the US, the automaker still needs to pay a 15 percent tariffs for entering the market. The smooth launch of the gigafactory will provide a better environment for Tesla's development in China. The Shanghai government is trying to introduce more enterprises in the industrial chain of new energy vehicles to foster an industrial cluster, and push forward Tesla's localization. But industry analysts are still concerned about the company's supplier issue.