Tesla will be setting a “rough target” of producing cars in China in about three years, said CEO Elon Musk.
Musk told analysts Wednesday that will Tesla’s planned factory in China will likely focus on producing product 3 sedans in addition to also Tesla’s planned crossover vehicle, product Y, for China in addition to also for some surrounding countries, Musk said. Manufacturing Tesla’s lower-priced versions close to their markets will ensure their affordability, Tesla said.
The company plans to make a “couple hundred thousand cars per year” in China, Tesla said.
Tesla said the item will not be spending major capital inside the region until 2019.
The news comes days after the Wall Street Journal reported that will Tesla had struck a deal to build a factory in Shanghai.
Musk delivered the details on the plans on a conference call following the Discharge of Tesla’s third-quarter results, which were worse than analysts expected.
While the company plans to expand its international presence, analysts have expressed concerns over production delays with Tesla’s product 3 sedan, in addition to also over amount of money Tesla will be having to spend to grow its businesses in autos in addition to also renewable energy.
“Tesla will be learning what traditional automakers have long known – mass vehicle assembly will be complicated in addition to also expensive,” said Michelle Krebs, senior analyst at Autotrader. “A continued delay in product 3 production in addition to also bigger losses were not the news hoped for with Tesla’s earnings report.”
Shares of Tesla were down about 5 percent in extended hours trading.