Elon Musk the Tesla Chief Executive Officer had a business deal with authority of China on Tuesday for building a newly developed auto plant in Shanghai, this is the first factory outside the United States, and by this it will double the size of electric car maker’s at global manufacturing.
This deal was done when Tesla higher the price of on U.S. made vehicles that they sell in China just to offset the pricing of new tariffs which is done by Chinese Government by U.S. President Donald Trump’s for heavy taxes on Chinese goods.
Elon Musk was at Shanghai on Tuesday, whereas Shanghai Government said in one of their statements that they have no issue with Tesla’s decision for investment and not just about new factory in city, which is the centre for the Chinese auto industry but they have to work for research as well as with development. China is known for their hands on pure talent and centralising investment with world automakers with the advancement of electric vehicle technology.
Tesla was the one which produce first car around two years back and their factory was constructed in Shanghai Factory, they had 500,000 vehicles in just one year as the company said.
That made Tesla’s Shanghai plant more standard with almost 200,000 to 300,000 vehicles in a year. Tesla raised 1.5 percent in U.S. trading and many analyst came to question that how the company going to manage all the money to build such large staff support .
Elon Musk said this year will be great for Tesla as there cash- flow going to increase this year .Analyst said Tesla will raise there funding from there new list of new projects, which includes the launch of an electric semi truck, with a pick- up truck, a compact SUV, and new battery, which Musk has proposed for China and Europe.
Musk’s pursuit of a China plant
China be the largest market for electrical vehicles, and there are many analyst that said electric vehicles market and sales will grow fast if government of China regulation and rules goal towards 100 percent electric vehicles by 2030.
“The Shanghai plant will help to build better image of Tesla in China along with producing and avoiding import system . This is going to be best for Tesla so far in China market.” Said Tasha Keeney, an analyst at ARK Invest.
