After months of speculation, Tesla to open a plant in Shanghai

By Lulu Chang Published October 26, 2017

It’s official. Tesla is going to China. On Sunday, October 22, the Wall Street Journal reported that the car company had reached a deal to open a manufacturing plant in Shanghai. The demand in the Asian market for electric vehicles has driven much of the industry’s growth this year, and Tesla’s new deal could help the company establish a foothold in a crucial market.

According to the Journal’s sources, the agreement with the Shanghainese government will allow Tesla to “build a wholly owned factory in the city’s free-trade zone.” This marks the first such deal granted to a foreign car company, and could be hugely beneficial in helping Tesla to cut production costs. That said, the firm would still likely be forced to reckon with a 25-percent import tariff.

Recommended Videos

When reached for comment, Tesla only restated the company’s previous position, noting that Tesla has plans to “clearly define” production plans in the Asian nation by the end of 2017, and that the company “is working with the Shanghai Municipal Government to explore the possibility of establishing a manufacturing facility in the region to serve the Chinese market.”

Tesla certainly looks to be in desperate need of more factories and production plants, as the company is currently facing rather serious bottlenecks that appear to be significantly impacting the on-time delivery of its highly anticipated Model 3 sedans. While 400,000 of these vehicles have been pre-ordered, only a tiny fraction have been produced and distributed.

Separately, the Journal noted that having a a presence in China could help improve the company’s relationship with that government. As Michael Dunne, an auto industry consultant told the publication, having Teslas built in China would be seen in a positive light by the nation’s officials, and “in turn, will give Tesla goodwill leverage to negotiate better China market-access terms in the future.”

Tesla’s own leader, Elon Musk, has long signaled not only an interest, but a need for vehicle and battery manufacturing plants outside of the United States, and specifically in Europe and Asia. And as per these latest reports, it looks like Musk’s vision is one step closer to becoming a reality.

Former Contributor

Fascinated by the effects of technology on human interaction, Lulu believes that if her parents can use your new app…

Topics

Cars

Order an Uber and a self-driving Mustang might show up

Electronics, Phone, Mobile Phone

Ordering an Uber in London could come with a surprise today. Instead of a conventional car and driver pulling up, you might find a Ford Mustang Mach-E that can drive itself. Uber has launched London's first public robotaxi service in partnership with British autonomous driving company Wayve. The service is available through the Uber app, meaning you don't need to download anything new or book a special type of ride to try it.

There is one important caveat. Although the cars will handle the driving themselves, a trained safety operator will initially sit behind the wheel, ready to intervene if necessary. Fully driverless rides are planned for a later stage. The launch fleet consists of electric Mustang Mach-Es equipped with cameras, radar, and Wayve's AI Driver technology. These systems give the vehicle a 360-degree view of what's happening around it. And if anywhere can put that technology through its paces, London seems like a pretty good candidate.

Cars

Range Rover Electric arrives with 543hp, 600km range, and a starting price of the moon

The electric Range Rover is here, and your wallet may need CPR

Range Rover EV

The Range Rover has never been shy about luxury, size or price, and its first fully electric version is carrying that tradition into the EV era. Jaguar Land Rover’s (JLR) first battery-electric Range Rover is now open for orders, starting at £154,070, or about $208,420. That makes it one of the most expensive electric SUVs on the market.

The electric model costs almost £50,000 more than the standard combustion-engine Range Rover. It is priced in the same territory as the electric Mercedes-Benz G 580 and not far from ultra-luxury gasoline SUVs such as the Bentley Bentayga.

Cars

A solar ambulance has successfully tackled 500 miles of difficult terrain

Stella Juva

For years, solar-powered vehicles have largely lived in the world of prototypes, university projects and ambitious demonstrations. Now, one has completed the kind of test that matters far more than a flashy concept reveal: it drove hundreds of miles through difficult terrain while carrying medical equipment and generating enough electricity to operate independently.

Called Stella Juva, the vehicle was developed by Solar Team Eindhoven, a group of 23 students from Eindhoven University of Technology and two other educational institutions. According to a CNN report, the team describes it as the world's first solar ambulance. Unlike a conventional ambulance, however, Stella Juva is designed less to rush patients to hospitals and more to bring medical care to people who cannot easily reach it.