Tesla appears to be setting the stage for the expansion of its business in China, with the company seemingly poised to utilize another plot of land adjacent to Gigafactory Shanghai. The updates came amidst reports that Tesla is looking to add energy-related operations for its business in the country.
The recently-posted land rights’ transfer announcement did not list Tesla by name, though filings noted that the 461,142.40-square-meter (113.9-acre) site was intended for new energy vehicle manufacturing. Considering that Gigafactory Shanghai is adjacent to the property, speculations among the electric vehicle community have suggested that the area may be allotted for the production of Tesla’s new vehicles like the $25K compact car or perhaps even other projects such as the Semi.
Even if Tesla ends up producing the $25K compact car in the Phase 1 zone of Gigafactory Shanghai as previously rumored, the 113.9-acre area could also be used by the company to host a facility that produces the company’s custom-designed 4680 battery cells. Such a scenario is actually quite feasible, considering that Gigafactory Berlin and Giga Texas are both expected to have their own battery facilities as well.
Apart from the new kind rights’ announcement, local news have recently hinted at Tesla Energy’s potential ramp in China. As per @bentv_sh, a drone operator who has followed Giga Shanghai’s development since its early days, Tesla China’s operating entity has recently undergone industrial and commercial changes to include energy vehicle power and energy exchange facilities.
On February 28, Tesla China's operating entity Tesla (Shanghai) Co., Ltd. has undergone industrial and commercial changes, the scope of business added new energy vehicle power ⚡️⚡️⚡️exchange facilities sales, etc. pic.twitter.com/KV6S3UcelU
— 乌瓦 (@bentv_sh) February 28, 2021
These updates seem to hint that the electric car maker is looking to establish a market for its energy products in China as well. Tesla’s electric car business, after all, is just one part of the company. With Tesla establishing a foothold in China with its energy division, the company could effectively participate in the country’s aggressive push towards renewable energy, which will likely only be more prominent in the coming years.