Tesla opens ten­der for Chi­nese Gi­gafac­tory

Global Times US Edition - - BIZOVE -

Tesla Inc has opened a ten­der for the con­struc­tion of its Shang­hai Gi­gafac­tory and at least one con­trac­tor has started buying ma­te­ri­als, ac­cord­ing to sources and doc­u­ments re­viewed by Reuters, the clear­est in­di­ca­tion that con­struc­tion is im­mi­nent.

The de­tails, pre­vi­ously un­re­ported, re­veal that State-owned Shang­hai Con­struc­tion Group Co is tak­ing part in the bid­ding while a unit of China Min­metals Corp is pre­par­ing ma­te­ri­als for the plant’s foun­da­tions.

The $2 bil­lion fac­tory, Tesla’s first in China, is a ma­jor bet for the US-based elec­tric ve­hi­cle (EV) maker as it looks to bol­ster its pres­ence in the world’s big­gest auto mar­ket, where its earn­ings have been hit by in­creased tar­iffs on US im­ports.

The Gi­gafac­tory would also be China’s first wholly for­eign-owned car plant, whose progress is widely seen as a re­flec­tion of bi­lat­eral re­la­tions and also the de­gree to which China is open­ing up its mar­kets.

Tesla, led by bil­lion­aire Chief Ex­ec­u­tive Elon Musk, has be­gun seek­ing bids from com­pa­nies look­ing to build the plant, ac­cord­ing to two peo­ple with knowl­edge of the mat­ter and a con­struc­tion doc­u­ment on an of­fi­cial lo­cal bid­ding plat­form.

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