Hyperdrive
Tesla Plots Bold China Factory Move, Stays Silent on Cost
- Musk clinches agreement with Shanghai on auto-assembly plant
- Baird says big question for investors is how it’ll be paid for
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Tesla Inc. and the Shanghai government have left out a crucial detail in announcing a groundbreaking deal for the biggest name in electric cars to build its vehicles in China: how much it’s all going to cost.
Chief Executive Officer Elon Musk sealed a crucial agreement Tuesday to start building its second car assembly plant in the world. Construction will begin soon after approvals and permits are secured, and the first vehicles will roll off the line within roughly two years, a Tesla spokesman said in an email. It’ll take another two to three years for the factory to reach its capacity to build about 500,000 vehicles annually.