Tesla Inc. plans to build a factory in Shanghai, the company’s first one outside the United States, Head of Worldwide Sales Robin Ren stated during the firm’s meeting of shareholders.
The announcement comes after the Chinese government claimed it would remove limitations in the ownership of electric vehicle makers this year. In addition, by building the cars in China, the move would allow the company to avoid import tariffs.
The new factories dubbed Dreadnought are to produce both batteries and assemble cars, CEO Elon Musk stated during the meeting. Musk added: “We’ve made a lot of mistakes with Model 3 production. We’re confident we know how to address them, we are addressing them…The approach to automation that we’ve taken in some cases has worked in some cases has not. But it’s clear that there are some elements of production which are really well-suited to people doing it, and some parts really well suited to robotics…”