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Teslas China factory to produce 3000 cars each week: Report




US electric car manufacturer Tesla plans to produce 3,000 Model 3 sedan cars every week at its factory in Shanghai when the Chinese factory commences work, according to a Sina news report, referring to US Securities and Exchange Commission (SEC) government requirements on Friday.

The California-based electric car manufacturer aims to increase model 3 production to about 10,000 units per week, which means that almost a third of the vehicles will be manufactured in China in the near future.

In July, Shanghai announced the government announced that Tesla would set up a full-time superfabric in the city with a production capacity of 500,000 cars each year, which would also be the largest foreign investment project in the city.

China is Tesla's largest overseas market, with Model S and Model X now available for sale. But the ongoing trade friction between the world's two largest economies, the US and China, indicates business prospects.

Prices for Tesla cars increased by 7,1[ads1]32 yuan ($ 20,172) and 256,000 yuan (37,151 dollars) on July 7, as China has imposed an additional 25 percent tariff on US goods to counter US tariffs on Chinese imported goods from 6 July according to a local Chinese report.

Tesla said it plans to increase investments of up to $ 6 billion in factories and equipment over the next two years, including the Shanghai plant, where the US company plans to increase the levels of localization through local sourcing and production.

The US company said it would take about two years to build the factory and start production in Shanghai and plan to begin transferring parts of Model 3 production to China in 2019 while Tesla cars manufactured in China will only be offered Chinese consumers, according to the Sina report.

China is the world's largest car market and has sold 24.72 million passenger cars and around 777,000 new energy vehicles in 2017. Composition data also indicated that more than 17,000 Tesla cars were sold in China last year, up 51 percent from 2016.

The Chinese government has also set targets to ban the sale of petrol and diesel-powered vehicles by 2030, with the aim of achieving 100 percent sales of electric vehicles at the time.

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