Is Tesla Shanghai a Joint Venture?
2 Answers
No, it is a wholly-owned company. Tesla has established a Gigafactory in China, located in Shanghai, which is a wholly-owned facility. The construction of Phase 1 of Tesla's Gigafactory began on January 7, 2019, at the intersection of Lianggang West Avenue and Zhengjia Road in the southeastern part of Shanghai. The factory produces Tesla Model 3 and Model Y vehicles. Below are the specifications for these two models: 1. Model 3 dimensions: The vehicle's length is 4694 mm, width is 1850 mm, height is 1443 mm, wheelbase is 2875 mm, front track is 1580 mm, rear track is 1580 mm, minimum ground clearance is 138 mm. It is a four-door, five-seater sedan with a trunk capacity of 425 liters. 2. Model Y dimensions: The vehicle's length is 4750 mm, width is 1921 mm, height is 1624 mm, wheelbase is 2890 mm, front track is 1636 mm, rear track is 1636 mm. It is a five-door, five-seater SUV model.
I know about the Shanghai Tesla Gigafactory, which is wholly owned by Tesla, not a joint venture. This was big news in the automotive industry because, in 2018, the Chinese government unprecedentedly allowed foreign companies to establish wholly owned car factories, making Tesla the first beneficiary. Located in Shanghai's Pudong district, the factory began production at the end of 2019, mainly manufacturing Model 3 and Model Y. The wholly owned model gives Tesla full control over operations, eliminating the hassle of coordinating with Chinese partners and accelerating localization. For example, they used local supply chains, reducing costs and making the Model 3 much more affordable. It also exports globally, with production in 2022 accounting for over half of Tesla's total global output. This is good news for consumers—cars are cheaper, and maintenance is more convenient. Next time you buy a car, you might want to pay more attention to locally produced models.
