Tesla will push with expanding globally after CEO Elon Musk has beat his deadline with regards to making cars in China.
On Wednesday, the multi-million company declared that Tesla’s new Gigafactory in Shanghai, China started its trial production. The new factory is reportedly ahead of schedule this month and is building ‘full vehicles, from body to paint to general assembly.’
According to CNN, Elon Musk stated that the company is planning to announce the exact location of its next Gigafactory in Europe at the end of this year.
Apparently, the Shanghai factory is noted for how fast it came together. It was only 10 months ago that the company broke ground on the plant. The company said through a letter to its shareholders that the facility was approximately 65% cheaper to build compare to its Model 3 production plant in the United States.
“We have also dramatically improved the pace of execution and capital efficiency of new production lines,” Tesla said on the letter.
Elon Musk implied that the Shanghai factory could be the company’s “template for fuure growth.”
Tesla’s progress have always encouraged investors. Reportedly, the stock plummeted for more than 23% this year, but on Wednesday, the shares went soaring at 20% because of the company’s solid earnings during the third quarter.
“Im very impressed,” Tu Le, the founder of Sino Auto Insights, a Beijing based consulting firm, said. “Living in China, nothing usually happens that fast.”
Tesla declared that the primary goal for the Shanghai unit is to make 250,000 cars annually before finally increasing to 500,000 units.
“China’s just a huge market, versus the United States and Europe, which are much smaller markets,” Tu Le continued. “If he doesn’t do well in china, then he doesn’t hit his goals,”