Tesla invests in Chinese subsidiary to build Gigafactory 3
The Chinese Tesla factory in Shanghai announced this summer soon should move to the execution phase, as on September 7 Tesla increased the registered capital of Tesla (Shanghai) Co., Ltd. from 100 million yuan ($16.6 million) to 4.67 billion yuan ($680 million).
That's enough to start the work at the Tesla Gigafactory 3, which in total is expected to cost at least $2 billion. The facility will produce up to 500,000 cars (and battery packs) annually.
Tesla didn't pick up a joint venture partner, so the hope is that China will not change its mind and let Tesla (and other foreign manufacturers) to produce and sell cars on its own. Thanks to this, Tesla will be able to completely control the entire production process without being subject to others, according to James Chao, IHS Asia Pacific Managing Director and Automotive Industry Analyst.
It's anticipated that the Chinese Gigafactory will produce Tesla Model Y (an affordable electric SUV).