Shanghai Will Let Tesla Build 500K Cars a Year

Shanghai Will Let Tesla Build 500K Cars a Year

China until recently levied 25-percent tariffs on imported cars, and for decades automakers have been moving to build more vehicles in the markets where they are sold to neutralize currency shifts and trade policy reversals. The company's Model 3 unit seemed destined for what Musk called a "production hell", with the company having several product line suspensions in order to reevaluate manufacturing practices in the Fremont facility.

Trump publicly attacked Harley-Davidson when it announced plans to move some production of motorcycles made for markets overseas out of the U.S. This came after the European Union retaliated to the Trump administration by imposing tariffs on American imports such as motorcycles, orange juice, bourbon, boats, cigarettes and denim products to the tune of $3.4 billion.

Prices of Tesla vehicles sold in China have increased by over $20,000 thanks to the ongoing trade war between the United States and China.

"From there, it will take roughly two years until we start producing vehicles and then another two to three years before the factory is fully ramped up to produce around 500,000 vehicles per year for Chinese customers", the spokesman said.

Tesla Inc on Tuesday signed agreements with Shanghai authorities that will allow it to open a plant in the Chinese city with an annual capacity of 500,000 cars, local media reported. A Tesla representative in China didn't immediately respond to a request for comment.

This has made US -built Tesla vehicles significantly more expensive in China. Tesla has built about 88,000 cars through the first half of this year.

A woman sits in a Tesla Model 3 vehicle at the Auto China 2018 motor show in Beijing on April 25, 2018.

Tesla's Chief Executive Elon Musk attended the signing, according to a Reuters witness.

Defending champ Joey Chestnut sets record with 74 hot dogs
In the women's competition, Miki Sudo , 32, defended her title, the fifth year in a row, chomping down 37 hot dogs and buns. Another name to keep an eye on is 24-year-old Carmen Cincotti , who gobbled down 60 hot dogs last year to finish second.

It registered a new electric auto firm in Shanghai in May after China announced that it planned to scrap rules on capping foreign ownership of new-energy vehicle (NEV) ventures by 2022.

A day after it announced price hikes for the Model S and Model X in China, in response to new tariffs on imported electric cars in the country, Tesla has finalized a deal to build a new factory in Shanghai, according to a Bloomberg News report.

A city government statement said the factory would be the biggest foreign investment to date in Shanghai, which is also a base for joint ventures between General Motors Co. and Volkswagen AG and a state-owned automaker.

Previous reports uncovered that a new business licence has been approved for a company registered by Tesla's set-up in Hong Kong. The government's target is 7 million vehicles a year by 2025.

At the top of the range, the most expensive Model X crossover is now 1.57 million yuan ($240,000) up from about 1.32 million ($200,000) before.

Tesla sold 14,779 vehicles in China a year ago, according to data from LMC Automotive.

China has emerged in recent years as the world's largest market for electric vehicles.

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