Tesla expands its operations globally as the ground breaking outside U.S. occurs for the first time

There was ground breaking in Shanghai as Tesla Owner Elon Musk has decided to open the first manufacturing plant outside the United States. This manufacturing plant will make the Model 3 and Model Y cars as Tesla tries to open itself to foreign markets.

Tesla will face tough rivalry from the existing manufacturers but this plant will help reduce the cost of Tesla models as the tariffs will be avoided.

The plant costs about $5bn and is termed as Gigafactory which will start the production of Model 3 at the end of the year.

The urge to make a plant in China comes with the tensions between China and U.S.A about the tariffs rates and the U.S. carmakers have voiced themselves against President Trump’s tariffs policies.

Due to the rising tariffs, Tesla costs were 55% to 60% higher than the local cars.

The dialogue between the two countries will take place in China’s capital this week.

Senior editor of the Chicago Morning Star

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