trending Market Intelligence /marketintelligence/en/news-insights/trending/rfi03zbehvgas4esnu8q0a2 content esgSubNav
In This List

Tesla reveals Shanghai Gigafactory plans; shareholders back Musk in proxy votes

Podcast

Next in Tech | Episode 49: Carbon reduction in cloud

Blog

Using ESG Analysis to Support a Sustainable Future

Research

US utility commissioners: Who they are and how they impact regulation

Blog

Q&A: Datacenters: Energy Hogs or Sustainability Helpers?


Tesla reveals Shanghai Gigafactory plans; shareholders back Musk in proxy votes

SNL Image

Tesla Inc.'s Reno, Nev., Gigafactory.

Source: TeslaInc.

Tesla Inc. plans to build its first foreign "Gigafactory" in Shanghai followed by another in Europe, executives told shareholders June 5 at the integrated electric vehicle, energy storage and solar company's annual meeting in Silicon Valley.

The disclosure came after Tesla in May set up a wholly owned subsidiary in Shanghai to address the world's largest market for electric vehicles. The next-generation factory will establish a new template for Tesla's manufacturing hubs, incorporating both production of lithium-ion batteries and electric vehicles, Musk said.

Tesla's inaugural Gigafactory near Reno, Nev., a joint venture with Panasonic Corp., produces batteries, and Tesla completes its electric cars in Fremont, Calif. "Future Gigafactories will include vehicle and battery pack and powertrain as a single integrated unit," Musk said. Tesla has been holding discussions about the plant with "various governments in China," added Robin Ren, a Tesla vice president for the Asia Pacific region. "We really look forward to working with them in the years to come."

Tesla will "probably" reveal additional details about its factory in Shanghai as early as July, Musk said, and announce its European factory by the end of 2018.

In the U.S., the company is "quite likely" to hit its delayed production target for its mass-market Model 3 sedan of 5,000 units per week at the end June, the CEO told shareholders. Manufacturing obstacles have kept Tesla from reaching that milestone, a key metric for the loss-making company's stated aim to become profitable as soon as the third quarter of 2018 and a bone of contention with investment analysts. Asked by one shareholder whether Tesla's timelines were believable, given its troubled Model 3 launch, Musk admitted that he has "an issue with time."

Shareholders vote with Tesla board

Shareholders, nevertheless, overwhelmingly backed Musk in voting down a resolution to strip him of his role as chairman according to preliminary results. A bid to block reappointment of three board members to new terms, including the CEO's younger brother, Kimbal Musk, also failed. Tesla plans to release the exact voting results within four business days.