SHANGHAI (Reuters) - Tesla Inc (TSLA.O) Chief Executive Officer Elon Musk on Tuesday landed a deal with Chinese authorities to build a new auto plant in Shanghai, its first factory outside the United States, that would double the size of the electric car maker's global manufacturing. The deal was announced as Tesla raised prices on U.S.-made vehicles it sells in China to offset the cost of new tariffs imposed by the Chinese government in retaliation for U.S. President Donald Trump's heavier duties on Chinese goods. Musk was in Shanghai Tuesday, and the Shanghai government in a statement said it welcomed Tesla's move to invest not only in a new factory in the city, a center of the Chinese auto industry, but in research and development, as well. China has long pushed to capture more of the talent and capital invested by global automakers in advanced electric vehicle technology. Tesla plans to produce the first cars about two years after construction begins on its Shanghai factory, ramping up to as many as 500,000 vehicles a year about two to three years later, the company said.
Tesla Inc has signed an agreement with the Shanghai government for an 860,000 square metre plot of land to build its first overseas Gigafactory, the electric carmaker said in a Chinese social media post on Wednesday. The land agreement marks a key step towards the firm and its Chief Executive Elon Musk making cars locally in China for the fast-growing market, even as tariffs imposed by Beijing on U.S.-made goods have caused it to hike prices of its imported models. Tesla signed a long-anticipated deal with Shanghai authorities in July to build its first factory outside the United States, which would double the size of its global manufacturing and help lower the pricetag of Tesla cars sold in the world's largest auto market. Tesla Inc has signed an agreement with the Shanghai government for an 860,000 square metre plot of land to build its first overseas Gigafactory. The land agreement marks a key step towards the firm and its CEO Elon Musk making cars locally in China.
A proposed Tesla supercharger station includes a drive-in restaurant. Tesla CEO Elon Musk (right) signs a deal with an unidentified official in China to build a new plant in Shanghai. Tesla on Tuesday announced plans to build a new factory in Shanghai that's expected to make 500,000 electric vehicles annually within about five years. The Palo Alto, California-based automaker signed a deal with the government of Shanghai as CEO Elon Musk visited the city. Musk had repeatedly said Tesla was closing to announcing a new plant in China, where he has said the company would collocate production of electric vehicles and batteries.
Residents walk past a Tesla store in Beijing, China, Monday, Jan. 7, 2019. Tesla Motors CEO Elon Musk said Monday on twitter that the automaker is breaking ground for a Shanghai factory and will start production of its Model 3 by the end of the year. BEIJING – Tesla Inc. broke ground Monday for a factory in Shanghai, its first outside the United States. CEO Elon Musk said Monday on Twitter that the company will start production in China of its Model 3 and a planned crossover by the end of the year. Tesla announced plans in July to build the Gigafactory 3 facility in China, the biggest electric vehicle market, despite trade tension between Beijing and Washington.