Asian Tech Press (Nov 2) -- Tesla Inc may establish its second mega-factory in China on Qingdao West Coast New Area, Chinese media reports said on Tuesday.
Sources close to the matter revealed that a Tesla China delegation signed a memorandum of cooperation (MoC) with the Qingdao Municipal Government and the Huangdao District Government in Qingdao Cosmopolitan Exposition last Friday, the reports said.
According to Tesla CEO Elon Musk's plan, the U.S. electric vehicle giant will lay out and build a second mega-factory in Asia. If Tesla's second mega-factory finally lands in Qingdao, it will undoubtedly be a big push for the coastal city's new energy vehicle (NEV) industry.
Public information shows that Qingdao's auto industry has basically formed three large clusters: Jimo Auto Industry New City, Laixi New Energy Vehicle Production Base and West Coast Auto and Parts Industry Cluster.
As the news currently circulating online, several Chinese cities and districts are now actively seeking to introduce Tesla, including Qingdao West Coast New Area, Hangzhou Qiantang New Area, Shenyang, Zhengzhou and Shenzhen, hoping to become the site of Tesla's second Chinese mega-factory.
Among these cities, Qingdao has the most powerful economy in Shandong, and Hangzhou is located in Zhejiang, the largest market for Tesla. And Shenyang has a deep foundation in the automotive industry, while Zhengzhou has the country's most populous hinterland of the Central Plains. Shenzhen is the birthplace of electric vehicles in China, and Tesla will also use Shenzhen-based BYD's lithium iron phosphate batteries.
It is highly likely that Qingdao will take the target according to the news released by various media on Tuesday, and the probability will be the West Coast New Area, rather than the previously rumored Jimo District.
Qingdao West Coast New Area has ports, a free trade zone, and also is the origin of the top-selling electric car Wuling Hongguang Mini EV. In addition, the district is also close to the China-SCO Local Economic Cooperation Demonstration Zone where charging equipment giant TGOOD was introduced.
