Tesla to Open a New Factory in Shanghai
Tesla Inc. has announced that it will build a new factory in Shanghai to create a new megapack battery, which will increase tensions between Beijing and Washington. The megapack battery is a large-scale energy storage unit that was announced in China after Elon Musk's visit. The construction of the factory is supposed to start in the third quarter of 2023, and production is expected to begin in the second quarter of 2024. The battery unit is capable of powering an average of 3,600 homes for an hour, and the factory will produce over 10,000 packs or 40 GWh per year.
Shanghai is a major city in China that has become a global hub for manufacturing and trade. There are several reasons why Shanghai is considered a good place to set up factories, including its strategic location, skilled labor force, established industrial ecosystem, business-friendly environment, infrastructure and facilities, growing consumer market, and government support, making it an attractive location for both domestic and international businesses to set up factories.
A few years back, Hertz took a bold step by purchasing 30,000 Teslas, aiming to electrify 20% of its rental fleet.