Home Technology Tesla to invest $188 mln to expand Shanghai factory capacity -Beijing Daily

Tesla to invest $188 mln to expand Shanghai factory capacity -Beijing Daily

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Tesla to invest $188 mln to expand Shanghai factory capacity -Beijing Daily

SHANGHAI, Nov 26 (Reuters) – Tesla Inc (TSLA.O) plans to invest up to 1.2 billion yuan ($187.91 million) to expand manufacturing capacity at its Shanghai factory that can enable it to make use of 4,000 extra individuals on the web site, state-backed Beijing Daily newspaper reported on Friday.

The newspaper attributed the knowledge to a Shanghai authorities platform for corporations’ environmental info disclosures.

The funding quantity was redacted within the doc Tesla printed on Nov. 23 on the platform when Reuters accessed the doc on Friday.

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Tesla didn’t reply to a Reuters request for remark.

The submitting confirmed that growth will enable Tesla to add 4,000 employees, taking the variety of individuals the plant can make use of to 19,000. There will probably be no change to the fashions the factory at the moment produces, in accordance to the submitting, which additionally didn’t specify how a lot manufacturing capacity will probably be elevated.

Tesla’s Shanghai factory was designed to make up to 500,000 automobiles a 12 months, and at the moment has the capacity to produce Model 3 and Model Y autos at a price of 450,000 whole items a 12 months.

The automaker’s China gross sales are surging although regulatory stress is mounting following client disputes over product security and scrutiny over how the agency handles information. Last month, Tesla mentioned it had constructed a analysis centre and a separate information middle in Shanghai to retailer information regionally.

It at the moment ships China-made Model 3s to Europe, the place it’s constructing a factory in Germany. In October, it offered 54,391 China-made autos, together with 40,666 for export, China Passenger Car Association information confirmed.

The Shanghai factory is wholly owned by Tesla and is the primary and solely overseas passenger automobile plant in China exempt from being operated by a three way partnership.

($1 = 6.3860 Chinese yuan)

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Reporting by Brenda Goh; Editing by Himani Sarkar and Christopher Cushing

Our Standards: The Thomson Reuters Trust Principles.

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