Electric car maker Tesla plans to spend 42 million yuan ($6.4 million) to build a new factory in Shanghai on Nov. 26 to start producing electric vehicle charging piles in China from next year, according to the latest documents filed by electric car maker Tesla on Nov. 26. The move is aimed at expanding its charging infrastructure in China. At present, China is the largest auto market in the world.
Tesla currently sells all four of its models in China, but only the Model 3 is domestically produced, while the Model Y will begin production at its Shanghai plant in the next few months, and the Model S and Model X are still being produced in California, and delivered to Asian customers by sea.
Tesla is already preparing for a rapid increase in the number of its vehicles in China as two mass-market models, the Model 3/Y, are mass-produced at the Shanghai plant. As more Tesla electric vehicles hit the road in China, more chargers are needed to reduce wait times for owners and increase availability across the country.
According to the document, Tesla will invest 42 million yuan to build a new charging pile factory, which will be located near the Shanghai factory. The factory is expected to be completed in February 2021 and will produce 10,000 charging points per year. Tesla currently needs to import charging piles from the United States, usually installed on charging stations or parking lots. Tesla sold 94,492 Model 3s in China alone between January and October, and there’s plenty of evidence that building a factory for electric vehicle charging would be even more of a benefit, especially given that the company builds supercars in China. Potential time savings with charging piles.
Tesla launched the Supercharger V3 last year and moved production to its New York factory, where the company also makes solar roof tiles. The move helped Tesla increase the production of charging piles, which in turn expanded the network of charging piles. In 2020, Tesla accelerated its deployment and has added 20,000 charging piles this year.
China has massive government subsidies to encourage consumers to use electric vehicles. The abundance of gasoline vehicles has greatly increased the amount of greenhouse gases in the atmosphere, so the government continues to try to influence buyers through tax cuts and subsidies, reducing the purchase price of electric vehicles. Currently, the Standard Range Plus Model 3 is the only car eligible for the subsidy, as it is priced below the $300,000 threshold. Before the subsidy, the car was priced at 269,700 yuan, and the price dropped to 249,900 yuan after the subsidy. However, all cars are eligible for new energy vehicle purchase tax relief, which can save car buyers about 44,000 yuan.
Tesla’s most recent quarterly earnings call showed that the Shanghai plant has the capacity to produce 250,000 Model 3s per year. This is good news for Tesla and owners as capacity ramps up and the Model Y is about to start production. Tesla executives said this year that the company would expand its charging network to provide better service.
Responsible editor: YYX
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