Market Overview

Report: Tesla Might Be Expanding Its Gigafactory

Report: Tesla Might Be Expanding Its Gigafactory

Electric automaker Tesla Inc (NASDAQ: TSLA) is reportedly looking to expand its China-based Gigafactory 3 facility, according to Electrek.

What Happened

Tesla's Gigafactory 3 in Shanghai will likely play a bigger than previously expected manufacturing role amid ongoing China-U.S. trade tensions, Electrek reported Monday.

If Tesla manufactures components in the facility for production in China, it will avoid import tariffs in the largest global auto market.

Tesla finished constructing most of the exterior of its Chinese building during the summer months, but recent drone footage suggests coming expansions, Electrek said. A YouTube video by Jason Yang suggests the company is active in grading additional land next to the factory and digging for new foundations.

Why It's Important

Tesla hasn't confirmed an expansion of its new facility, and an artist depiction of the finalized building looks similar to its current form, according to Electrek.

Coinciding with Electrek's report, China's government has formally expanded its Shanghai Free-Trade Zone to include Tesla's factory. The expansion is part of the country's efforts to expand economic reforms, according to SCMP.

What's Next

Tesla shares were trading down 0.53% at $243.89 at the time of publication Monday. 

Related Links:

Investor: Tesla's Gigafactory 3 Construction Underway In China

What China Means For Ford And Tesla

Photo courtesy of Tesla. 

Posted-In: Electrek electric vehicles EVs GigafactoryNews Rumors Global Media Best of Benzinga


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