Electric car maker Tesla’s landmark gigafactory in Shanghai has officially received the required power supply for preliminary production from the State Grid Corp of China. As a result, the factory has received approval to begin the production of their flagship Model 3 vehicle.
State Grid Corp also said that they will eventually increase the power supply up to eightfold to allow the factory to reach its peak production. The project involved 55 kilometers of cables and about 17 kilometers of ducts and was completed at a remarkable pace that is commonly associated with Chinese infrastructure projects, taking only six months. Tesla’s gigafactory is the first entirely foreign owned car factory in China.
The production of Tesla’s Model 3 in China will augment the competitiveness of the vehicle in a crowded and saturated Chinese electric vehicles market. However, Tesla very much remains a premium option within the industry. In addition, Tesla has secured support from the Chinese government, as they are exempt from a 10% sales tax.
Tesla expressed their appreciation for the efforts of the government. Song Gang, Director of Manufacturing for Tesla Greater China, said: “State Grid Shanghai Electric Power Company has started cooperating with us in all dimensions, and carried out preparatory work for the project in advance. They have been working overtime for the implementation of the project, making huge efforts to ensure its progress and quality.”