It’s recently been struggling to scale production of its all important Model 3. Photo credit – Pixabay
Tesla shares jump on China factory news
After teasing details at a controversial press conference last month (at which Elon Musk – Tesla’s eccentric CEO – made headlines by refusing to answer ‘boring’ questions from journalists) a few more facts have emerged about a new ‘Gigafactory’ for Shanghai.
Firstly, let’s tackle the jargon. Gigafactories are essentially giant spaces for Tesla to undertake battery and vehicle manufacture.
At the moment, one of these is in operation in Nevada, which will eventually be expanded to become the largest building in the world (according to Musk).
Shanghai’s Gigafactory will apparently have capacity to produce a stonking 500,000 vehicles every year.
This news alone was enough to bump the share price of the company by two percent. c, so news of forthcoming mass production was warmly received.
However, further details of the proposed factory were still in short supply, and Tesla shares lost some of their gained value by later in the day.