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BEIJING (Reuters) – Tesla Inc (TSLA.O) signed an agreement with the Shanghai government for an 860,000 square meter land intended for the construction of its first Gigafactory abroad, announced the US automaker in an article published Wednesday by Chinese social media.
FILE PHOTO: A Tesla compressor is on display at the Paris Auto Show, Paris, France, October 2, 2018. REUTERS / Joseph White
The land deal marks a milestone for the company and its managing director Elon Musk, who make cars locally in China for the fast-growing market, even as Beijing's tariffs on US-made products forced to raise the prices of its imported models.
Tesla signed a long-awaited agreement last July with the Shanghai authorities to build its first plant outside the United States, which would double the size of its global production.
"Securing this site in Shanghai, the first Gigafactory outside of the United States, is an important step forward for our next advanced and sustainably-developed production site," said Robin Ren, vice president of Global Sales, in a statement. You're here.
Tesla did not give the price tag for the plot, but the Shanghai Bureau of Land Planning and Resources announced Wednesday that a plot of 864,885 square meters had been auctioned at a price of 973 million yuan (140.51 million dollars).
Tesla signed an agreement with the Shanghai authorities in July to open a plant of 500,000 cars a year in the Chinese city.
Tesla, which began recruiting for Shanghai's new plant in August, had previously announced that it would mobilize capital on Asian debt markets to fund construction, which would cost about $ 2 billion.
($ 1 = 6.9248 Chinese yuan in renminbi)
Report by Yilei Sun and Adam Jourdan; Edited by Christopher Cushing
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