Tesla builds first Megafactory outside the US in China

Automaker Tesla has decided to build its first Megafactory outside the US in the Chinese city of Shanghai. The company announced this. The factory should be operational in just over a year and start making 10,000 batteries per year.

Tesla Megapack

The Megafactory is just like the one in the US Megapacks to make. These are large batteries for energy storage. That will be about 10,000 per year, Tesla reports. The American factory is located in Lathrop, California.

It is unknown why Tesla chose Shanghai. Many Western companies are actually reducing their investments in China. This is partly due to the trade conflict between the US and China, increased labor costs in the country and the critical attitude of the government towards large companies.

Production should begin in spring 2024, says Chinese state media Xinhua. The production is not only intended for the Chinese market, but the Megapacks must be sold worldwide. Tesla has also had a Gigafactory in Shanghai for several years. It is unknown what support Tesla will receive for the construction of the factory.

Tesla deal for Megafactory Shanghai, China