CEO of Tesla Elon Musk on Tuesday signed an agreement with Chinese authorities to build a new factory in Shanghai. He will be the first plant of the Mask outside of the U.S., and should help to double the volume of production of electric vehicles in the world.
The first cars Tesla plans to start producing at the new plant in two years after we start construction of the factory. And considering the amount of production of 500 thousand copies per year, the company intends to enter another two-three years after the start of the lines.
One of the reasons for the transfer of facilities Tesla in “China” became the new tariffs imposed by China on goods from the US in response to higher taxes, which the current President of the United States Donald trump decided to impose Chinese manufacturers.
On the other hand, Elon Musk discussed the possibility of building a plant in China long before the administration trump’s proposed tough new duties on Chinese goods, and the Chinese market is very attractive for most of the major automakers of the world.
For example, last year BMW sold 560 thousand cars that more than able to implement the brand in the USA and Germany combined. Overall last year in China was sold 28 million cars in 2025 is expected to increase sales to a level of 35 million, which is more than two times higher than the current performance of the US market, where the market of new passenger cars reached about 17 million units per year.
In addition, China is the largest market for electric vehicles, and actively promotes the development of alternatives to the internal combustion engine in world markets. In the coming decades, the government plans to eliminate petrol and diesel cars.