Tesla Acquires Massive Chunk Of Land In China For Gigafactory 3

OCT 17 2018 BY MARK KANE 26

Tesla now knows where to build the Gigafactory 3.

Tesla (Shanghai) Co., Ltd. acquired an 860,000 square meter plot of land at the Shanghai Lingang Equipment Industrial Zone in China, where it plans to build Gigafactory 3.

The purchase was done through an auction for 973 million yuan (about $140 million), which seems to be in line with previous reports.

“The land transfer agreement was signed on Wednesday, October 17, with Tesla representatives including VP of worldwide sales Robin Ren sealing the deal with the Shanghai Economics and Information Committee, the Shanghai Lingang Area Development Administration, and the Lingang Group. Addressing the agreement, Ren noted that securing the site bodes well for Tesla’s mission as a whole.”

“Tesla did not give the price tag for the plot, but the Shanghai Bureau of Planning and Land Resources said on Wednesday that a plot of land of 864,885 square meters had been sold at auction at a price of 973 million yuan ($140.51 million). “

The size of the area seems to be 40% of that in Nevada for Tesla Gigafactory 1.

Tesla intends to produce at the Gigafactory 3 some 500,000 electric cars and battery packs annually. The investment cost will be no less than a few billion dollars.

It’s expected that Gigafactory 3 will produce the Model Y all-electric SUV that’s yet to be unveiled.

Source: Reuters, finance.sina.cn, Teslarati

Categories: China, Tesla

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26 Comments on "Tesla Acquires Massive Chunk Of Land In China For Gigafactory 3"

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Rosonator

I lived in Shanghai for years, but never went there. Seems a good place, quite straight from Pudong.

ffbj

Unless you were a drunk sailor in the 19th century.

Benz

“The size of the area seems to be over 40% of that in Nevada for Tesla Gigafactory 1.”

That means that the land area of the Gigafactory in Nevada is more than twice as large as the land area of the Gigafactory in Shanghai?

ffbj

Correct;
3k acres Nevada G I
13c acres Shanghai GIII

Benz

@ ffbj

Square meters please

Shanghai Gigafactory: 864,885 m2
Nevada Gigafactory: ?

About 4 million sq meters (1,000 acres initial, possible expansion not included)

Benz

@ Anthony

The land area of the Gigafactory in Nevada is “about 4 million square meters”

The land area of the Gigafactory in Shanghai is less than 1 million square meters.

But the Gigafactory in Nevada is only for batteries (cells and packs).

And the Gigafactory in Shanghai is for batteries (cells and packs) and also EV’s.

Shouldn’t it be more logical that the land area of the Gigafactory in Shanghai has to be substantially larger than the land area of the Gigafactory in Nevada?

Ron M

212.5 acres in Shanghai, I think Musk has learn from Gigafactory and Fremont factory. He knows the layout they want the equipment they need and I’m sure has had conversations with Chinese banks to fund the construction. Sometime in 2021 the first cars should be manufactured.

Rolando

Land prices in the Shanghai industrial area are more costly than in the remote desert in Nevada, which is a reason to limit the area.

Windbourne

I seriously doubt that land outside of the city in CHina costs more than America.

Windbourne

I seriously doubt that land outside of the city in CHina costs more than America.
———- edit —–

huh. I missed the $. 140 M buy. That is $163 / m^2 in shanghai. That is not as cheap as I thought.

But, Sparks land is $35-$334/m^2. If it was close to sparks, then it is $334+. If it was out of town a LONG ways and appears to have no real water rights, it was $35.

So, no. Land in China is not that expensive. Afterall, Nevada, western utah is probably the CHEAPEST in the lower 48 and you have to go up to Alaska to get cheaper (can probably still find some for $5-10/acre or $5-10 / 4046 m^2).

Windbourne

America does the exports. There will be no exporting from China.
And the model 3 drivetrain is currently produced in Nevada.
So nope.

ffbj
Ron M

I get 212.5 Acres from 860,000 sq meters. If that’s correct $140 million seems ridiculously expensive. Although I have no idea what land is worth in Shanghai.

Udi

Land in Shanghai is worth much more than land in the Nevada desert

Windbourne

$163 / m^2 in shanghai.

Sparks land is $35-$334/m^2. If it was close to sparks, then it is 334+. If it was out of town a LONG ways and appears to have no real water rights, it was $35.

So, no. Land in China is not that expensive. Afterall, Nevada, western utah is probably the CHEAPEST in the lower 48 and you have to go up to Alaska to get cheaper (can probably still find some for $5-10/acre or $5-10 / 4046 m^2).

Benz

1 acre = 4,046.85 square meters

You say that the Gigafactory in Shanghai is “13c acres”

13c acres = 1,300 acres = 1,300 x 4,046.85 m2 = 5.26 million m2

But the text clearly states:

“Tesla did not give the price tag for the plot, but the Shanghai Bureau of Planning and Land Resources said on Wednesday that a plot of land of 864,885 square meters had been sold at auction at a price of 973 million yuan ($140.51 million). “

864,885 square meters is less than 1 million square meters.

Therefore, “13c acres” simply cannot be correct.

Windbourne

In fact, an acre in GF china costs $659,498.

Oddly, still a lot less than decent land (i.e. owns water and mineral rights) close to sparks.

Benz

The Shanghai Gigafactory land area is 213.72 acres.

ffbj

Let a hundred flowers bloom and then have one big elephant come in and trample them all. Anyway a nice article on the wild-west ev development in China: https://finance.yahoo.com/news/chinese-electric-car-makers-nurtured-003717286.html

100 flowers blooming, until they don’t have any room to grow. Then instead of all being limited a great gardener removes the weaker ones to let the strong grow much much stronger until there are just 10 super flowers left.

ModernMarvelFan

$1167 per acre is pretty cheap.

Udi

864,000 sqm (213 acres) for $140 million =~ $657,000 per acre

Ron M

Yeah that’s what I came up with, I thought something was wrong. I can’t believe it’s that expensive

Rolando

Just enough space to put up a tent first on the parking lot for fast production, because 2 years waiting for the concrete building to be finished is very long …… just to have a foot in the biggest EV market on the planet asap.

Benz

@ Mark Kane

“The size of the area seems to be over 40% of that in Nevada for Tesla Gigafactory 1.”

Gigafactory 1 = about 500 acres?