A few months ago, Tesla confirmed reports that the company was looking to establish a factory in Shanghai to better serve the Chinese market. On Oct. 17, Tesla announced it had secured the rights to a 210-acre piece of land in Lingang, Shanghai on which it will build Gigafactory 3.
The electric car company plans to build Gigafactory 3 on an accelerated construction schedule in order to get the factory up and running as quickly as possible in the face of new tariffs. Between import tariffs and ocean transport costs, Tesla is operating at a 55% to 60% cost disadvantage compared to the same car produced locally in China.
See Also: Under-development solar panels snap together and turn waste heat into hot water
Construction is expected to begin in the near future and take about two years, and $2 billion, before the factory can produce vehicles. It will take another two or three years from that point before the factory is at full power, which will allow it to produce about 500,000 vehicles per year.
Gigafactory 3 will be the first Gigafactory outside of the United States. Gigafactory 1 is located at the Tahoe Reno Industrial Center in Nevada. Gigafactory 2 is located in Buffalo, N.Y.
Related Stories
| Jul 19, 2013
Renovation, adaptive reuse stay strong, providing fertile ground for growth [2013 Giants 300 Report]
Increasingly, owners recognize that existing buildings represent a considerable resource in embodied energy, which can often be leveraged for lower front-end costs and a faster turnaround than new construction.
| Jul 18, 2013
Top Local Government Sector Construction Firms [2013 Giants 300 Report]
Turner, Clark Group, PCL top Building Design+Construction's 2013 ranking of the largest local government sector contractor and construction management firms in the U.S.
| Jul 18, 2013
Top Local Government Sector Engineering Firms [2013 Giants 300 Report]
STV, URS, AECOM top Building Design+Construction's 2013 ranking of the largest local government sector engineering and engineering/architecture firms in the U.S.
| Jul 18, 2013
Top Local Government Sector Architecture Firms [2013 Giants 300 Report]
Stantec, HOK, IBI Group top Building Design+Construction's 2013 ranking of the largest local government sector architecture and architecture/engineering firms in the U.S.
| Jul 18, 2013
Top State Government Sector Construction Firms [2013 Giants 300 Report]
PCL, Clark Group, Turner top Building Design+Construction's 2013 ranking of the largest state government sector contractor and construction management firms in the U.S.
| Jul 18, 2013
Top State Government Sector Engineering Firms [2013 Giants 300 Report]
Jacobs, AECOM, URS top Building Design+Construction's 2013 ranking of the largest state government sector engineering and engineering/architecture firms in the U.S.
| Jul 18, 2013
Top State Government Sector Architecture Firms [2013 Giants 300 Report]
Stantec, Perkins+Will, HNTB top Building Design+Construction's 2013 ranking of the largest state government sector architecture and architecture/engineering firms in the U.S.
| Jul 18, 2013
Top Federal Government Sector Construction Firms [2013 Giants 300 Report]
Clark Group, PCL, Hensel Phelps top Building Design+Construction's 2013 ranking of the largest federal government sector contractor and construction management firms in the U.S.
| Jul 18, 2013
Top Federal Government Sector Engineering Firms [2013 Giants 300 Report]
Fluor, URS, AECOM top Building Design+Construction's 2013 ranking of the largest federal government sector engineering and engineering/architecture firms in the U.S.
| Jul 18, 2013
Top Federal Government Sector Architecture Firms [2013 Giants 300 Report]
HOK, SmithGroupJJR, PageSoutherlandPage top Building Design+Construction's 2013 ranking of the largest federal government sector architecture and architecture/engineering firms in the U.S.
