According to a WSJ article published on Oct 17, 2018 (Tesla Advances in China, Buying Land for a Factory), Tesla has agreed to by a 210-acre site near Shanghai for $140 million.
- Tesla said it was “accelerating the construction of our Shanghai factory” in response to the U.S.-China trade dispute. Prior to July 2018 China levied at 15% tariff on all imported vehicle.
- In July 2018 China introduced an additional 25% tariff in retaliation for new U.S. auto tariffs. This raises the tariff on autos imported into China to 40%.
- Tesla sold about 17,000 cars in China in 2017, roughly 50,000 in the U.S. and 103,000 globally.
- Tesla’s cars cost 55-60% more in China that electric cars built in China, according to China.
- The company intends to eventually produce up to 500,000 cars a year in a plant on the site.