English

By Wang Shen

Tesla Inc.'s first overseas Gigafactory, which plans to produce 500,000 electric cars each year, will be settled in the Shanghai Lingang Area, as reported in the Yicai Media Group on Wednesday.

Tesla, an American carmaker, builds not only all-electric vehicles but also infinitely scalable clean energy generation and storage products.

On July 10, the Shanghai government and Tesla signed a memorandum of understanding. Tesla will build a Gigafactory with functions, including research and development (R&D), manufacturing, and sales.

This Gigafactory is the largest foreign capital invested in a manufacturing project in Shanghai 's history. It also indicates a new step that accords with the new opening-up measures set by the Shanghai government lately to attract international investors and boost foreign trade.

According to the memorandum, the Shanghai government and Tesla will focus on deeper collaboration and communication in the areas, such as technological innovations and industrial development. The Shanghai government will give full support to the construction of Tesla's subsidiary and the electric vehicle R&D innovation center.

This electric vehicle R&D innovation center is an essential component of Tesla's global R&D system and will actively promote the innovative technology of the electric vehicle.

Hua Chuang Securities stated that Tesla's brand has a powerful appeal and positive reputation in the global market. After its Model 3 was released, the global orders have reached nearly 500,000 cars, but Tesla could only produce 2,000 vehicles per week.

If Tesla localizes the Model 3, it can quickly open up the Chinese domestic market. After Tesla restricts its cars and production domestically, the companies that have entered its industrial chain will benefit first.

Yoshio Ito, a representative from the Panasonic Automotive Systems Co., Ltd., pointed out that the Tesla Model 3's production has been improved significantly, resulting in a situation of intermittent shortage of batteries.