Elon Musk to break ground for $5bn Tesla factory in China

Neil Armstrong was the first human to walk on the moon.                  NASA

Neil Armstrong was the first human to walk on the moon. NASA

As Bloomberg first reported, Tesla investors want to subpoena musician Claire Elise Boucher, a.k.a. Grimes, the rapper Azealia Banks, and several news outlets due to their potential knowledge about Musk's August tweet in which he said, "Am considering taking Tesla private at $420". He signed a preliminary agreement with the Shanghai government to build a Tesla Gigafactory in China.

The billionaire-entrepreneur is facing a vehicle market that probably shrank previous year for the first time since at least the 1990s as uncertainties surrounding the trade war between the world's two biggest economies, signs of weakening domestic demand in China and a stock slump take a toll on consumers.

Miffed Tesla investors, who are suing both Musk and the company, counter that subpoenas of Grimes and Banks are necessary because of the close proximity the singers had to Musk in the days and weeks surrounding the incendiary tweet.

A local plant will help Tesla lower prices in the market to compete with a new generation of local rivals including Nio, Byton and XPeng Motors. The deadline of reduced tariff would end on March 2nd, and after that, the tariff on USA made autos on China would revert back to 40 percent, instead current 15 percent.

A Chinese flag is seen on the land secured by Tesla for its Gigafactory in Shanghai.

Also on August 13, 2018, Gizmodo published an article titled "Elon Musk Responds to Azealia Banks' Claims of Ghosting, Tweeting, and LSD: I Don't Know Her.".

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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.

Alan Kang, Shanghai-based analyst for consultancy LMC Automotive, said: "Tesla's sales (in China) have dropped over the past few months because of high price caused by the tariffs".

"With the construction of the Shanghai factory, the faster the better (for Tesla)", Kang said.

According to Teslarati, a multi-platform company with a focus on everything that Musk has, vehicle production at "Gigafactory 3" would start two years after its construction begins.

The so-called Gigafactory would also be China's first wholly foreign-owned vehicle plant, a reflection of China's broader shift to open up its auto market even amid a whipsawing trade war between Washington and Beijing.

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