Tesla chairman: China is very important to build factories on all continents

Tesla is currently focusing on the Chinese market and plans to further expand production in China. In response, Tesla Chairman Robyn Denholm said that to achieve its goal of producing 20 million cars a year by 2030, Tesla needs to have manufacturing capabilities on every continent.

Deholm said after a speech at Australia's National Press Club on Wednesday, that we're building factories all over the world. Our view is that the world is moving to electric vehicles and lithium-ion batteries, and we need access to all the major markets around the world.

Following the Shanghai and California factories, Tesla recently opened factories in Berlin, Germany, and Texas, USA. After upgrading the production line and getting rid of the impact of the epidemic on production, Tesla's China business has resumed full production. Tesla delivered 76,965 Chinese-made versions of its cars in August, slightly down from a record 78,906 in June.

De Homem points out that it's important to have cars on every continent because when you're building a long-term supply chain, you want the cars to travel as short a distance as possible before they're delivered to the owner, and that includes shipping and ocean shipping because all of these processes will increase carbon dioxide emissions.

According to Tesla's goal, by 2030, the company will produce 20 million electric vehicles a year, well above the production of just under 1 million in 2021. With a production line upgrade at the Shanghai plant alone, Tesla has doubled the plant's annual production capacity to about 1 million vehicles.

Speaking of China, Dehom said, Markets around the world are important, so having manufacturing capabilities on every continent is important.

Tesla entered the Chinese market in 2018, and its Tesla Shanghai Gigafactory started construction in January 2019, becoming China's first wholly foreign-owned vehicle manufacturing project. The Shanghai plant was also completed at a breakneck pace, making China Tesla's most important market outside the United States. However, Tesla has also encountered some safety accidents and consumer rights.

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