Tesla Delivers First China-Built Cars

Marking a milestone, Tesla Inc. delivered its first set of cars built in China Gigafactory 3, its first plant outside the United States. The luxury electric car maker tweeted that the first 15 customers to get the Model 3s built at its Shanghai plant were its own employees. The first owner in China reportedly is an employee of the company's Xintiandi store in Shanghai. At the ceremony, company officials announced that more employees will receive cars in the coming days, while deliveries to outside customers will start in January, before the Chinese new year beginning on January 25. At the factory, Tesla is currently producing 1,000 vehicles a week with an estimated annual production of up to 150,000 cars for the world's largest market for electric vehicles as well as automobiles. Over the next year, the company aims to double the weekly rate to around 3,000 cars. Construction of the China Gigafactory 3 had begun in January this year and production commenced in October. Last week, Tesla's Chinese built car was added to a list of vehicles qualifying for an exemption from a 10 percent purchase tax in the country. For the completion of the gigafactory, Tesla has recently secured local loans of up to 9 billion yuan or around $1.29 billion. The company has also received an unsecured revolving loan facility of up to 2.25 billion yuan. Meanwhile, Tesla's Chief Executive Officer Elon Musk in November had announced that the next Gigafactory would be built in Berlin, Germany. The company also plans an engineering and design center near Berlin's new airport. The company's first Gigafactory is operational near Reno in Nevada, and it has a factory that makes charging equipment and power electronics in Buffalo, New York.