Tesla inks $9 billion deal to build a new factory in China

Tesla eyes China as a new production partner, inking a new $9 billion deal to build a factory in Shanghai.

@anthony256
Published Mon, Jun 27 2016 12:54 AM CDT   |   Updated Tue, Nov 3 2020 11:59 AM CST

Tesla Motors is eyeing off China as its new production hub, with the company signing a non-binding agreement with Jinqiao Group, which is a Chinese government-owned company.

Tesla inks $9 billion deal to build a new factory in China | TweakTown.com

Jinqiao Group will be constructing the production plant for Tesla, where it will be built-in Shanghai. Tesla has reportedly signed a $9 billion on the deal after company CEO Elon Musk teasing six months ago that Tesla would choose China as a production facility site by the middle of 2016.

According to Bloomberg's report, both companies will invest $4.5 billion into the production plant, making it a much larger investment than Walt Disney Co.'s Shanghai-based theme park, which cost them $5.5 billion. How will Tesla benefit with a production plant in China? The electric car maker is paying 25% import tax it pays for each and every electric vehicle is ships to the country.

NEWS SOURCE:mashable.com

Anthony joined the TweakTown team in 2010 and has since reviewed 100s of graphics cards. Anthony is a long time PC enthusiast with a passion of hate for games built around consoles. FPS gaming since the pre-Quake days, where you were insulted if you used a mouse to aim, he has been addicted to gaming and hardware ever since. Working in IT retail for 10 years gave him great experience with custom-built PCs. His addiction to GPU tech is unwavering.

Newsletter Subscription

Related Tags

Newsletter Subscription
Latest News
View More News
Latest Reviews
View More Reviews
Latest Articles
View More Articles