Economy

Guess where the third Tesla Gigafactory is coming up?

Guess where the third Tesla Gigafactory is coming up?

Washington imposed penalty tariffs on Chinese goods and Beijing retaliated by raising duties on imports of American products including electric cars.

As Tesla moves forward with plans to build electric cars in China, the automaker has secured land in the country for one of its so-called Gigafactories.

"Securing this site in Shanghai is an important milestone for what will be our next advanced, sustainably developed manufacturing site", Robin Ren, Tesla VP of worldwide sales, said in a statement.

A Tesla logo is seen in Los Angeles, California U.S. January 12, 2018.

Tesla has yet to say how it will pay for the factory.

Tesla's super factory in Shanghai was officially launched in the Lingang Area after Tesla signed a land grant contract with Shanghai municipal administration for planning and land resources.

Prince Harry climbs Sydney Harbour Bridge in 13 minutes
The Invictus Games are a multi-sport event specifically held for wounded or disabled veterans to participate in. Her husband Peter Cafe served in Cambodia, Afghanistan and Iraq and took his own life in February this year.

Though it ran into a bit of a roadblock earlier this year due to US-China trade war tariffs, the company has been selling its vehicles in the country for some time, with quite a bit of success. Beijing responded by slapping an additional 25 percent tariff on cars imported from the US, raising the total tariff to 40 percent.

The factory will help tap China's rapidly growing market for so-called new-energy vehicles (NEVs), a category comprising electric battery cars and plug-in electric hybrid vehicles, even as China's wider auto market cools.

With this, the company will also receive access to cash incentives that are only available to locally produced electric vehicles, a category Tesla will fall in once its Gigafactory 3 is up and running.

The company's planned Gigafactory 3 has been created to have a capacity of 500,000 vehicles.

Tesla began hiring for the new Shanghai factory in August and previously said that it would raise capital from Asian debt markets to fund the plant's construction, which is estimated to be around $2 billion.