Tesla Will Open Up a New Electric Car Factory in Shanghai

Sunday, 22 October 2017 - 6:03PM
Technology
Sunday, 22 October 2017 - 6:03PM
Tesla Will Open Up a New Electric Car Factory in Shanghai
Flickr/Steve Jurvetson
As Elon Musk continues his many operations both in space and beneath the Earth's surface, his electric car company now has an impressive new victory under its belt. 

In a first-of-its-kind deal, Tesla has reportedly made an agreement with the government of Shanghai to build a new factory in the city's free trade zone, according to the Wall Street Journal. It's the beginning of a potential new electric car market in China, and it's also a rare partnership with a foreign company, since Tesla will own this factory instead of simply partnering with a local Chinese manufacturer (which is usually what happens).

That "owning the factory" part is the most important aspect of the deal, since China is typically pretty restrictive about outside companies unless they're willing to give up profits by partnering with those local manufacturers. It's unlikely that Tesla will be able to avoid the 25 percent tariff that China normally mandates, but by owning the factory, this allows them to deal with much cheaper shipping costs.



So overall, this is great for Tesla, especially since they'd been planning this agreement since last June, but we'll have to wait and see how great it ends up being for the Chinese electric car market. The Chinese government is attempting to gradually phase out fossil fuel powered cars in favor of electric ones, and with Tesla getting this much freedom to make electric cars there, other car companies like Ford and Nissan are likely to follow suit.

In general, the electric car market is beginning to expand enormously, with everything from electric semi-trucks to electric cars from Dyson (the vacuum cleaner company) currently in the works. Many of these are designed to be self-driving as well - Tesla is certainly planning to make their cars artificially intelligent enough to drive themselves around, despite Musk's thoughts on the matter.

There's no word on whether it'll still be a long wait to actually get a Tesla in China once their factory gets going, because it's certainly enough of a pain trying to get one from their factory in California.
Science
Science News
Technology