Tesla Starts Hiring Spree For Gigafactory 3 In China

NOV 23 2018 BY VANJA KLJAIC 26

The move shows Tesla’s confidence in the opportunity-rich Chinese market

For Tesla, moving into the Chinese market – even before the tariffs – was one of the things that are going to make or break the company. China is on a fast track to becoming one of the world’s biggest markets, and thanks partly to the efforts of the local Chinese governments to curb the effects of air pollution, electric vehicles are going to be a highly coveted item. While most of the western world considers China poor, the truth is that China currently has a large middle class, all of whom are interested in luxury commodities such as electric vehicles.

To make vehicles cheaper for the Chinese market and to bypass the import tariffs deployed as a response to the same by the United States government, Tesla is building a Chinese based Gigafactory. Dubbed the ‘Gigafactory 3’, this production site will be located in the Shanghai industrial zone and it will have an area of more than 860,000 square meters. Furthermore, it’ll merge different areas of Tesla’s business, with items like research and development as well as manufacturing playing a big key. However, battery and vehicle production and assembly will be the most important work to be done at it.

 

Electric Cars

Tesla Model X in China

In order to fulfill the needs for its workforce, Tesla will attend an autumn talent recruitment fair at the Shanghai Lingang Industrial Zone on November 29 and 30. This was revealed through a  source at the Lingang Industrial Zone who delivered this information to the Global Times via telephone on Wednesday. According to data posted on the WeChat account called “Tesla Hiring” on Monday, Tesla opened a wide range of new positions for its Shanghai plant: everything from manufacturing managers and production directors, to positions such as electrical design engineer, global supply manager and senior recruiter to an architectural designer and process design engineer.

According to Wu Shuocheng, an independent analyst of the auto industry, this move by the U.S based carmaker signifies how much attention & importance does Tesla exert towards the Chinese market.

“For overseas carmakers like Tesla, where the market is, that’s where their factories are built,” he told the Global Times on Wednesday.

If their Gigafactory 3 plans succeed, Tesla could very well become one of the biggest car makes in the local Chinese market, essentially doubling their efforts in both sheer sales volume and income. However, companies like Volkswagen are also entering the Chinese market, where the German carmaker aims to  400,000 NEVs in China by the end of 2020, according to media reports. China, by the look of things, is going to become the next automotive industry battleground. And if that helps to clean the highly polluted air of major Chinese cities, well all for an all-out war over there.

Source: Globaltimes

Categories: Tesla

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26 Comments on "Tesla Starts Hiring Spree For Gigafactory 3 In China"

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I wonder if India is next or will it be the EU?

Next Giga Factory will be in the EU for sure.
India is much poorer than China.
India’s per capita GDP is about one quarter that of China’s, and the car market in India is geared towards very low end cars.

I honestly feel like these could have been US jobs in a better trade environment. Shipping to China would have been just a small premium and Tesla could have naturally grown their ecosystem in the states and slashed the trade deficit by virtue of being a great American product.

The 40% tariff makes manufacturing in China a must if Tesla wants to sell in bulk there.

which is why the west needs to do the same to china.
China is a developed nation now and this is just not right.

Just lashing out at China for the sake of it doesn’t appeal to me if all that happens is everything being more expensive. We should have done TPP, negotiated as a group with China, and gone in a free trade direction. What we have now is a mess. If unemployment was so low, what exactly is the best case here?

I get that, but a big slow down in China may actually be a good thing on a number of levels.
High tariffs on incoming cars mean inferior vehicles will continue to be made and sold in China.

I doubt it, since Musk is planning a Gigafactory in Europe…
China is a huge market and it‘s much cheaper to produce there.

Tesla wasn’t going to do any of this so early. Now they can’t even sell their Model S there without a fire sale. It’s a shame. All the US exporters are getting hammered and once this is done, they have no reason to come back.

Even before the trade war started imports faced 25% tariffs and exclusion from incentives in China so there was never a way around producing in China as the trade war started long before the current round.

Right. The Orange One is conducting the U.S. response to China’s trade war in a very stupid and counter-productive manner, but this has been going on for many years now. The U.S. did need to respond in an appropriate manner to China’s thoroughly unfair, lopsided trade practices, but of course we can’t expect anything appropriate or strategic or well thought out from the current White House.

For a very short time the chinese tariffs were REDUCED.
But then somebody thought it would be a good idea to have new tariffs on Aluminium and steel imported to the USA.
But good, GF3 is now coming faster than originally planned.

BTW: can anybody give me an update on the 6 new steel factories the orange somebody said were being built in the US?

Actually, no new steel mills, but several have re-opened and several others are getting investments.
The tariff reduction was MINOR and absolutely worthless.
Yeah, Trump’s Al and Steel tariffs had to be one of his more stupid moves (and he has a lot). Combine that with his actions on Europe, Canada, and Mexico. Just insane.
BUT, his actions on China have overall been good. And I think that when he raises the tariffs in December, it will be a good thing, BUT, he needs to provide incentives to bring the companies back home.

There’s one in southern Illinois shortly after about 300 went back to work. USWA threatened to strike over wages.

No but there’s a couple GM factories closing. Trump must be the scarecrow. To bad the Wizard can’t help him.

Producing locally in key market makes sense in the long term. China is a big enough market by itself. So is EU and US. So it is a good long term move to have factory on all 3 continents. It avoids currency fluctuation. It sizes factory and capacity for local demand. It reduces supply chain complexity. It also avoids geo-political risks.

China is a very large car market, bigger than US, but just like US it is the largest part of a larger market. G3 is for all of Asia (Taiwan, South Korea, Japan, etc included).

A factory in Asia was needed but it’s a shame South Korea or Japan cannot even be a consideration given China’s unfair trade policies. A wise and strategic approach to China must address these and other issues to have any meaningful long term affect.

Look at all the foreign manufacturers in the US BMW, Mercedes, Honda, Toyota, Volkswagen, Nissan I’m sure I’m missing some. They build cars here to sell in the US and some are even shipped to other countries.

to accomplish that, it is time to stop the tariffs and the vats with tax breaks for local (mexico and china both impose VATs which is actually good, but then push tax breaks for local companies, turning those into virtual tariffs).

Lets move to China ! * 🙂 *

No way to avoid it.
Now less than before the stable genius implemnted his great plan.

How much do you suppose a Chinese Tesla worker will make per hour? Do you think they’ll have enough ‘discretionary income’ to buy a Model 3?

Not a new one for the “average” worker but that’s no different then in the US. They will be able to afford a used one or perhaps the next generation of affordable Teslas.

On about $10,000 annual income,.. how much will the affordable Tesla cost?

/it’s a helluva lot different than the U.S.

China has a large middle class have you seen all those skyscrapers with apartments that sell for $350,000

Those prices are artificially inflated. Ordinary Chinese have few investment opportunities, but investment in construction is one of their options. That’s why there are many areas in Chinese cities with block after block after block of high-rise apartment buildings which are entirely empty.

It’s a financial bubble, and while I’m not a “financial guy”, I think it’s a pretty serious one.