Published: Mon, January 07, 2019
Business | By Eloise Houston

Tesla to break ground on Shanghai factory

Tesla to break ground on Shanghai factory

"Such an aggressive timeline is classic Elon Musk, especially considering that components of Gigafactory 3, such as the advanced manufacturing robots and machinery that would be used to build the vehicles, would likely be coming from overseas", the report said.

"It will be a state-of-the-art vehicle factory and a role model for sustainability", Tesla CEO Elon Musk said.

The suit also seeks to subpoena the New York Times, Business Insider and Gizmodo, which all spoke with Musk or Banks about the events surrounding Musk's tweet.

Concerns about the shrinking U.S. tax credit and Tesla's decision to cut prices by Dollars 2,000 to partially offset the lower incentive sent the automaker's shares plunging 9.7 percent during the first two trading days of the year.

At the height of the dispute, when China imposed the additional duty on American-made autos, Tesla sales in the Asian country, its second-largest market, plunged to as low as 211 in October, from 3,552 in June, according to data compiled by Bloomberg Intelligence. Musk wrote in a post on Twitter.

The carmaker, which now imports US-made vehicles to sell in China, is building the plant in an auto market that is set to contract this year for the first time in decades, though so-called new-energy vehicle (NEV) sales have been strong.

But Tesla has said its Shanghai plant will be "wholly-owned" by the company.

Domestic production would help shield Tesla against import duties as the US and China find ways to wriggle out of the tariff quandary.

A local plant will help Tesla lower prices in the market to compete with a new generation of local rivals including Nio, Byton and XPeng Motors. More expensive versions and other vehicle models will continue to be made in the US.

"Affordable cars must be made on same continent as customers", Musk said in another tweet.

On Instagram, Banks posted remarks from Kristy's filing challenging her credibility and said "this is going to get extremely ugly".

After four years of planning, Tesla finally breaking ground on its $5 billion factory in the world's biggest auto market.

"Looking forward to today launch the construction of a plant for the production of Tesla in Shanghai!", - said the businessman.

The facility is expected to churn out about 250,000 vehicles annually at first - the Model 3 and the planned Model Y - and that capacity will double over time.

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