Tesla acquires Shanghai land for megapack battery plant

Tesla (TSLA.O) has acquired land in Shanghai for a megapack battery manufacturing plant with production expected to start in the fourth quarter of 2024, Chinese state media reported on Friday. Tesla paid 222.42 million yuan ($31.13 million) for use rights to a 19.7-hectare (48.7 acres) plot, a separate government statement said on Thursday. The site is near an existing Tesla plant producing Model 3 and Model Y cars. Tesla did not immediately respond to a request for comment. Construction of the project, which will be capable of producing 10,000 megapacks per year, is scheduled to begin in the first quarter of 2024 with production starting in the fourth quarter, the official Xinhua News Agency reported. Tesla said in April that it would start construction in the third quarter of this year with production expected to begin in the second quarter of next year. The U.S. electric vehicle manufacturer’s gigafactory in Shanghai is producing with annual capacity of 1.1 million units. Tesla has indicated it wants to expand its EV capacity in Shanghai, which would require regulatory approval.