Tesla (TSLA) is set to break ground at its Chinese Gigafactory on Monday, chief executive Elon Musk tweeted in the early hours of the morning, saying that production of its electric vehicles would start there at the end of the year.
The Silicon Valley tech major aims to produce its Model 3 and Model Y electric vehicles at the Shanghai factory to serve the greater China region. Initial construction is due to be completed this summer, with Model 3 production set to start at the end of the year and reach high volume production next year.
“Shanghai Giga will produce affordable versions of 3/Y for greater China. All Model S/X & higher cost versions of Model 3/Y will still be built in US for WW market, incl China,!” Musk tweeted also on Monday.
The construction of an automobile factory in China comes at a time of tense trade relations between the US and China with both countries having imposed hefty tarriffs on goods – including automobiles – imported into the country.
US and Chinese delegates are scheduled to resume fresh trade reconciliation talks this week according to media reports.