Tesla opens tender for Chinese Gigafactory

Source:Reuters Published: 2018/12/6 22:48:46

Tesla Inc has opened a tender for the construction of its Shanghai Gigafactory and at least one contractor has started buying materials, according to sources and documents reviewed by Reuters, the clearest indication that construction is imminent.

The details, previously unreported, reveal that State-owned Shanghai Construction Group Co is taking part in the bidding while a unit of China Minmetals Corp is preparing materials for the plant's foundations.

The $2 billion factory, Tesla's first in China, is a major bet for the US-based electric vehicle (EV) maker as it looks to bolster its presence in the world's biggest auto market, where its earnings have been hit by increased tariffs on US imports.

The Gigafactory would also be China's first wholly foreign-owned car plant, whose progress is widely seen as a reflection of bilateral relations and also the degree to which China is opening up its markets.

Tesla, led by billionaire Chief Executive Elon Musk, has begun seeking bids from companies looking to build the plant, according to two people with knowledge of the matter and a construction document on an official local bidding platform.



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