$1.3 billion plant expansion for EVs When Tesla made its first car, it was the company’s vision to make all the cars of the future from electric power, with Musk stating that gasoline-powered vehicles would go away in a few years. In order to achieve this vision, Tesla needed a lot of battery manufacturing plants. The nation of China has quickly risen as one of the biggest suppliers for Tesla by becoming one of their top four manufacturing partners for battery packs and cells.
Benefits of $1.3 billion plant expansion for EVs
1. Tesla’s Model 3 is a cheaper alternative to the luxury vehicles of the world. China’s Hunan Provence and Jiangsu H-Tek, two of the biggest battery manufacturers in China, are both making cells for Tesla’s Model S at their new factories in China. The cells from these two factories have a low cost of 162/162Wh (whatthefran does not do), compared to the high cost of 320/336Wh for cells made in Germany by Tesla itself. This means that with China becoming one of Tesla’s three major battery manufacturing partners, Tesla will likely cut costs on Model 3 production, leading to cheap and affordable electric cars.
2. Tesla is making a car that is environmentally friendly. With the battery cells made in China, and with the things that China has to offer, Tesla will be able to make a lot of new products and cars that are environmentally friendly.
3. Tesla has one of the most aggressive plans for improving energy storage in the world. In order to achieve its vision of producing all-electric vehicles by 2020, Tesla plans on creating enough battery pack manufacturing plants to make up most of their battery needs by 2020.
4. China’s government would not let another electric vehicle company join Tesla as an important partner for it in this area without knowing about its investments back in 2015.
5. There are Tesla’s new solar roof tiles, which are made with solar cells that are made in China.