Tesla To Open Battery Plant In China

Electric vehicle maker Tesla (TSLA) has announced plans to open a new factory in Shanghai, China that will be capable of producing 10,000 batteries a year.

The large batteries to be produced in Shanghai, known as a “Megapack,” will store energy and help stabilize the country’s power grid.

The batteries will enable grid operators to move excess energy capacity between counties or states and ensure that power from intermittent sources can be stored and used when demand is particularly high.

The batteries will also help to prevent power outages in China, which have been an ongoing problem in the country of 1.4 billion people.

Tesla currently has a similar battery plant in Lathrop, California that can produce 10,000 batteries a year.

The company is planning to start construction on the new Chinese factory during the third quarter of this year, with production set to begin in the second half of 2024.

Tesla’s stock has declined 43% in the last 12 months to trade at $185.06 U.S. per share.

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