Musk: Next Gigafactory to be built in China
The next Tesla Gigafactory will be built in China. This was confirmed by Elon Musk at the press conference regarding the quarter 1 numbers. He expects to be able to reveal the exact location “soon”.
Tesla is profiting from the recent loosening of Chinese regulations regarding car manufacturing, as the import tariffs were lowered and the joint venture requirement was stricken. The Californians were thus far only able to reach the Chinese market via imports, but the new stance taken by the Chinese government has helped the factory plans achieve a new breakthrough, as the previous negotiations had not been very successful.
According to Musk, the future Gigafactories will also not only manufacture batteries, but include the complete vehicle production facilities. The Tesla Model Y will also go into production in 2020, but not in the Fremont facility, as was previously expected. Reports had indicated that the Model Y would be produced in Fremont as of 2019. This plan was obvious scrapped, instead the company will reveal the manufacturing location “at latest in the fourth quarter” of the year. Tesla had teased the compact SUV with an image last year, but kept details scarce.
Last night Tesla also discussed the business report for Q1, in which record expenses stood across from positive production news for the Model 3. Musk is aiming to produce 5,000 vehicles per week by the end of June.