Tesla to break ground on Shanghai Gigafactory today, CEO Musk says

Tesla Said to Be Close to Model 3 Approval for Europe Sales

Elon Musk isn’t keen on investors dragging girlfriend into tweet lawsuit

The CA based Electric Vehicle maker frim, has been targeting to accelerate sales in China, which was hit hurt by the impact of trade conflict between Beijing and Washington.

Tesla Chief Executive Elon Musk says the company will break ground on Monday for its Shanghai Gigafactory where it will begin making Model 3 electric vehicles (EV) by year-end.

Concerns about the shrinking USA tax credit and Tesla's decision to cut prices by $2,000 to partially offset the lower incentive sent the carmaker's shares plunging 9.7% during the first two trading days of the year. The challenging environment also includes competition from several start-ups that all want to be like Tesla.

The Tesla shareholders say the former girlfriend, Canadian singer Claire Elise Boucher, also known as Grimes, may have first-hand knowledge about what Musk was thinking August 7 when he shocked the world with a tweet: "Am considering taking Tesla private at $420".

A local Chinese plant may be crucial for Tesla, which is struggling to stave off a potential dip in demand in the US, its biggest market, after reductions in federal tax credits for EVs.

Domestic production would help shield Tesla against import duties as the USA and China find ways to wriggle out of the tariff quandary.

China raised the import tariff on US-made cars to 40 percent in July, but cut it back to 15 percent from the start of this year as part of a ceasefire in a trade war with the United States. While there is no official announcement on the regions the factory will cater to (except China of course), you can expect cars from this factory rolling out to other Asian markets as well, most likely India. In November, they clocked 393.

Pope appeals for migrants stranded aboard rescue ships
Another ship run by the German humanitarian group, Sea-Eye, carries 17 people rescued on December 29 on board its ship. Four children were being carried on one of the tiny recreational boats while the other was packed with 10 adults.

Equity losses in China past year wiped out more than $2 trillion of wealth, denting consumer appetite for luxury goods.

Passenger auto sales in the world's second-largest economy declined for six consecutive months through November, putting them on track for the annual decline. A key China PMI index fell below 50 in December to its lowest reading since May 2017, signaling weakening demand in the US$12.2-trillion economy.

Tesla signed a preliminary agreement with the Shanghai government a year ago to build the 500,000-unit factory in the Chinese city.

Tesla plans to produce its Model 3 and Model Y cars in the initial phase of production at the Shanghai plant, with an annual capacity of 250,000 vehicles.

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"We're excited to bring the Model 3 to Europe and China early next year, given that the market for midsize premium sedans in those regions is even larger than in North America", Musk said during the October earnings call.

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