Tesla buying more land for expansion in China: media report
Industry insiders believe, it is very likely that this piece of land will be used for the expansion of the Tesla factory, based on the information in the announcement.
Tesla’s Shanghai Super Factory may be expanded to boost production capacity further, China Securities News reports.
Recently, according to the media reports, a land transfer announcement was posted on the official website of the Shanghai Land Exchange Centre, and the plot is adjacent to the Tesla Shanghai’s super factory. Industry insiders believe, it is very likely that this piece of land will be used for the expansion of the Tesla factory, based on the information in the announcement.
According to the information, the plot covers a total area of 461,142.40 square meters and is located in the Lingang Heavy Equipment Industrial Zone of the Free Trade Zone. The permitted industry type is the manufacture of new energy vehicles and the investment intensity is not less than 14,925 yuan per square meter. It is believed to be “tailor-made” for Tesla.
As of press time, Tesla did not respond to this, the reports said.
In 2020, Tesla’s total global deliveries will reach 499,500 vehicles. The star models Model 3 and Model Y have been sought after by domestic consumers since they were made in China, and they have always been in short supply.
At the same time, according to the plan, Tesla will increase the production capacity of the Shanghai Super Factory this year to 450,000 vehicles per year, making it the second-highest production plant in its global strategy.
Faced with the market that is in short supply, increasing investment and expanding production capacity have become the top priority for Tesla’s Shanghai Super Factory. And this time Tesla is believed to make another move by obtaining the new land’s use rights, to further expand its production capacity to meet market demand.
In addition, there are reports that Tesla will use the new land to produce a new electric car priced at US$25,000, which is expected to be designed and produced in China.