--- title: "Tesla Finalizes Land Purchase for Its Upcoming Gigafactory in Shanghai, China" description: "The $2-billion factory will be built on a 534-square-mile plot of land purchased from the Chinese government." date: "2018-10-17" modified: "2019-05-24" authors: - name: "Jerry Perez" job_title: "Deputy Editor" link: "https://www.thedrive.com/authors/jerry-perez" url: "https://www.thedrive.com/news/24282/tesla-finalizes-land-purchase-for-its-upcoming-gigafactory-in-shanghai-china" categories: - "Car Tech" - "Electric Vehicles" - "Manufacturing" - "News" - "News by Brand" - "Tesla News" tags: - "automotive news" - "China" - "Electric Vehicle" - "Elon Musk" - "Gigafactory" - "News" - "Tesla" - "Tesla Model 3" - "Tesla Model S" - "Tesla Model X" --- # Tesla Finalizes Land Purchase for Its Upcoming Gigafactory in Shanghai, China ![]() *\www.thedrive.com\* Tesla confirmed the purchase of a 534-square-mile plot of land in Shanghai, China for the future site of its [upcoming Chinese Gigafactory](). The announcement was made official Wednesday morning, following the signing of an agreement with the Chinese government in July of this year. Despite having kicked-off the employee hiring process back in August, Tesla has remained tight-lipped about its latest endeavor, especially the price it paid for the *ginormou*s piece of real estate. However, the Shanghai Bureau of Planning and Land Resources told [*Reuters*]() that a plot in Shanghai with nearly identical dimensions recently sold for the equivalent of $140.51 million at auction. That’s a small drop in the bucket for [Elon Musk's new factory]() project, which is set to cost around $2 billion total. “Securing this site in Shanghai, Tesla’s first Gigafactory outside of the United States, is an important milestone for what will be our next advanced, sustainably developed manufacturing site,” said Robin Ren, Tesla’s vice president of worldwide sales. China’s [growing car market]() has a voracious appetite for Teslas, and the American automaker fully plans to take advantage of that. However, with President Trump and the Chinese government trading punches in the current trade war, tariffs on U.S.-made goods have raised the price of Tesla models substantially in the Asian country. The solution to this problem will be locally-produced Teslas, which will circumvent tariffs, lower overall costs, and capture a much larger portion of the Chinese electric-car market. While China’s car market is cooling overall, the demand for alternative-energy vehicles is steadily growing. In the first nine months of 2018, 721,000 new-energy vehicles (NEVs) have been sold in the country, cites *Reuters*. Tesla says its new factory will have an annual capacity of 500,000 cars, effectively doubling its [international business.]() ## Author Jerry is responsible for upholding The Drive's ethos as an audience-first, enthusiast-driven car blog that serves up industry-leading news, reviews, culture, and motorsport coverage. Overseeing a staff of writers and editors from his home base in Indianapolis, he helps curate the site's daily rundown, as well as its medium- and long-term content strategies. Jerry joined The Drive in 2018 as a writer and worked as news editor and managing editor before becoming the deputy in 2023. As a lifelong car enthusiast and racing fan, Jerry believes that all cars are cool, but the people behind the machines are even cooler. This belief often gives The Drive a slightly different focus from most other car sites, where we explore the humanity behind the machines. When he's not obsessing over the day's biggest stories or hanging out at a race track, Jerry can be found behind the wheel of a car, most likely sharing a laugh with his teenage son or daughter. ### Author social links [Instagram]()