InstaForex

November 26, 2021

Why Does Tesla Suddenly Want to Invest US $ 188 Million Near China?

 There are many smiles on the face for the 4,000 workers in China.


Tesla Inc. plans to invest 1.2 billion Yuan or US $ 187.91 million to expand the production capacity of its plant in China which will allow more than 4,000 people to be employed at the plant.


According to a Beijing Daily report on Friday, the investment information was linked to a Shanghai government platform that frequently discloses information about companies regarding the environment.


Citing a source from Reuters, the amount of the investment was edited in a Tesla document published on 23 November.


So far, Tesla has not commented further on the matter.



The filing saw the investment made to allow Tesla to employ another 4,000 workers at the plant, which can accommodate 19,000 people.


It also stated that no model changes would take place and did not specify how much production capacity would be increased.


The Tesla plant in Shanghai has been designed to produce as many as 500,000 cars a year and so far has the capacity to produce the Model 3 and Model Y at a rate of 450,000 units a year.


Tesla car sales rose sharply in China despite pressure following consumer disputes over product safety and scrutiny of how the firm handles data.


Tesla has responded to the dispute by saying they have built a separate research center and data center in Shanghai to store data.


The factory in Shanghai which is wholly owned by Tesla is the first and only foreign factory in China to be exempted from being operated by a joint venture.