Tesla plans to produce 10,000 “megapacks” a year, which are large lithium battery storage products intended for power stations.
Tesla is set to open a new “Megafactory” in Shanghai, China, to manufacture massive batteries.
This move will deepen the company's ties to the Chinese market despite previous criticism of its connections to the country. Tesla plans to produce 10,000 “megapacks” a year, which are large lithium battery storage products intended for power stations, capable of powering some 3,600 homes for one hour.
The company already has a Megafactory in Lathrop, California, that can produce the same number of megapacks. However, the Shanghai-based factory will supplement the output of the Megapack factory in California. While Tesla didn't specify when the Shanghai-based factory will open, Chinese state-run news outlet Xinhua reports that the factory will break ground later this year and open next year.
China is a crucial market for Tesla, accounting for a significant share of the company’s electric vehicle sales. However, Tesla has faced scrutiny for its relationship with China, particularly as U.S.-China tensions worsen.
In January of last year, Tesla was criticized for opening a showroom in the Xinjiang region, an area of the country where reporters and watchdogs say the Chinese government has detained thousands of members of the mostly-Muslim Uyghur ethnic group and other minority groups. Despite the controversy, Tesla is expanding its presence in China, with 56 stores in mainland China and Shanghai hosting the company’s largest manufacturing facility outside of the U.S. Tesla has also slashed prices for its cars in recent months to better compete with rivals in China.
This move will make Tesla even more relevant in the Chinese market and could boost the company's profits. The company is taking a significant step to show that it is committed to China, a country where the demand for electric vehicles is growing rapidly.
In conclusion, Tesla's move to open a Megafactory in China is a strategic business decision that could help the company solidify its position as a major player in the global electric vehicle industry. To read more latest news related to the tech industry, follow MobileAppDaily and stay updated.
With a mixture of literature, cinema, and photography, Manish is mostly traveling. When he is not, he is probably writing another tech news for you!
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