Tesla Model 3 vehicles at a factory in Shanghai. Tesla produces its vehicles in California, Texas, Shanghai and Berlin. Reuters
Tesla Model 3 vehicles at a factory in Shanghai. Tesla produces its vehicles in California, Texas, Shanghai and Berlin. Reuters
Tesla Model 3 vehicles at a factory in Shanghai. Tesla produces its vehicles in California, Texas, Shanghai and Berlin. Reuters
Tesla Model 3 vehicles at a factory in Shanghai. Tesla produces its vehicles in California, Texas, Shanghai and Berlin. Reuters

Tesla plans to build megafactory in Shanghai


Deepthi Nair
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Tesla, the world’s biggest electric vehicle manufacturer, will build a new megafactory in Shanghai as it looks to cater to growing demand for battery production.

The factory will be dedicated to manufacturing the company’s energy storage product Megapack, the company said on Twitter on Sunday.

It will complement a huge existing Shanghai plant making electric vehicles.

Tesla is scheduled to break ground on the plant in the third quarter of this year and start production in the second quarter of 2024, according to a report by Chinese state news agency Xinhua.

The new factory will initially produce 10,000 Megapack units every year, equal to about 40 gigawatt hours of energy storage.

The products will be sold worldwide, the Xinhua report said.

Investment details about the project were not disclosed.

Megapack is a powerful battery that provides energy storage and support, helping to stabilise the grid and prevent power cuts, according to Tesla's website.

Each unit can store more than 3 megawatt hours of energy — that’s enough energy to power an average of 3,600 homes for one hour.

Tesla currently produces its vehicles in Fremont, California; Austin, Texas; Shanghai, China; and Berlin, Germany.

Last month, Mexican President Andres Manuel Lopez Obrador said Tesla would build a new plant in the city of Monterrey.

The Nasdaq-listed company has also invested $3.6 billion to produce its “first high-volume Semi [heavy-duty truck] factory” in Reno, Nevada.

Meanwhile, Indonesia’s President Joko Widodo said his administration has also been in talks with Tesla about a factory.

Tesla founder and chief executive Elon Musk has set a goal of selling 20 million electric vehicles annually by 2030.

The Texas-headquartered company set a record for annual deliveries as it shipped 1.31 million cars last year, up more than 40 per cent year-on-year.

Tesla gigafactory in Germany — in pictures

  • Tesla chief executive Elon Musk speaks during the opening day of the Tesla Gigafactory in Gruenheide, Germany. EPA
    Tesla chief executive Elon Musk speaks during the opening day of the Tesla Gigafactory in Gruenheide, Germany. EPA
  • Musk speaks next to German Chancellor Olaf Scholz and the prime minister of Brandenburg state, Dietmar Woidke, during the opening ceremony. AFP
    Musk speaks next to German Chancellor Olaf Scholz and the prime minister of Brandenburg state, Dietmar Woidke, during the opening ceremony. AFP
  • The Tesla chief, right, was cheered as he oversaw the handover of the car maker's first German-made cars at the Gruenheide plant. EPA
    The Tesla chief, right, was cheered as he oversaw the handover of the car maker's first German-made cars at the Gruenheide plant. EPA
  • Musk described the opening as "another step in the direction of a sustainable future". EPA
    Musk described the opening as "another step in the direction of a sustainable future". EPA
  • Tesla is likely to launch a test version of its new "full self-driving" software in Europe, possibly next year, the chief executive said. EPA
    Tesla is likely to launch a test version of its new "full self-driving" software in Europe, possibly next year, the chief executive said. EPA
  • Musk dances as he hands over the first Teslas from the new factory. Getty Images
    Musk dances as he hands over the first Teslas from the new factory. Getty Images
  • Musk said battery production will be a "challenge" next year and a "limiting factor" in the coming years. Reuters
    Musk said battery production will be a "challenge" next year and a "limiting factor" in the coming years. Reuters
  • Tesla cars are parked at the site of the new Tesla Gigafactory in Gruenheide, Germany. Reuters
    Tesla cars are parked at the site of the new Tesla Gigafactory in Gruenheide, Germany. Reuters
  • Tesla was handing over the first Model Y cars made at its €5 billion Gruenheide plant to clients on March 22, the company said. Getty Images
    Tesla was handing over the first Model Y cars made at its €5 billion Gruenheide plant to clients on March 22, the company said. Getty Images
  • The new Tesla Gigafactory is the company's first European production centre. Getty Images
    The new Tesla Gigafactory is the company's first European production centre. Getty Images
  • Newly completed Tesla Model Y electric cars parked at the site near Gruenheide. Getty Images
    Newly completed Tesla Model Y electric cars parked at the site near Gruenheide. Getty Images
  • The new factory is the largest investment in a German car factory in recent history. Getty Images
    The new factory is the largest investment in a German car factory in recent history. Getty Images
  • A road sign reading 'water protection area' next to the Tesla logo at the site of the Tesla factory. EPA
    A road sign reading 'water protection area' next to the Tesla logo at the site of the Tesla factory. EPA
  • A road sign reading 'Tesla Street' at the new plant. EPA
    A road sign reading 'Tesla Street' at the new plant. EPA
  • A building under construction at the Tesla factory. EPA
    A building under construction at the Tesla factory. EPA
  • At full capacity, the factory will produce 500,000 cars annually. EPA
    At full capacity, the factory will produce 500,000 cars annually. EPA
  • Tesla plans to hire 12,000 workers at the plant. Bloomberg
    Tesla plans to hire 12,000 workers at the plant. Bloomberg

Deliveries for the three-month period ended on December 31 were up by about a third to 405,278, from 308,600 a year earlier, and about 18 per cent higher from 180,570 in the third quarter.

Tesla aims to produce about 1.8 million cars, marking a growth rate of more than 50 per cent this year.

The world's top car makers are planning to spend nearly $1.2 trillion through 2030 to develop and produce millions of electric vehicles, along with the batteries and raw materials to support that production, according to a Reuters analysis of public data and projections released by those companies last October.

Car makers have forecast plans to build 54 million battery electric vehicles by 2030, representing more than 50 per cent of total vehicle production, according to the analysis.

To support that unprecedented level of EVs, car makers and their battery partners are planning to install 5.8 terawatt-hours of battery production capacity by 2030, according to data from Benchmark Mineral Intelligence and the manufacturers.

Tesla has a factory in Lathrop, California, capable of manufacturing 10,000 Megapack units per year, Reuters reported.

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Rajasthan Royals 153-5 (17.5 ov)
Delhi Daredevils 60-4 (6 ov)

Rajasthan won by 10 runs (D/L method)

FFP EXPLAINED

What is Financial Fair Play?
Introduced in 2011 by Uefa, European football’s governing body, it demands that clubs live within their means. Chiefly, spend within their income and not make substantial losses.

What the rules dictate?
The second phase of its implementation limits losses to €30 million (Dh136m) over three seasons. Extra expenditure is permitted for investment in sustainable areas (youth academies, stadium development, etc). Money provided by owners is not viewed as income. Revenue from “related parties” to those owners is assessed by Uefa's “financial control body” to be sure it is a fair value, or in line with market prices.

What are the penalties?
There are a number of punishments, including fines, a loss of prize money or having to reduce squad size for European competition – as happened to PSG in 2014. There is even the threat of a competition ban, which could in theory lead to PSG’s suspension from the Uefa Champions League.

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

The biog

Alwyn Stephen says much of his success is a result of taking an educated chance on business decisions.

His advice to anyone starting out in business is to have no fear as life is about taking on challenges.

“If you have the ambition and dream of something, follow that dream, be positive, determined and set goals.

"Nothing and no-one can stop you from succeeding with the right work application, and a little bit of luck along the way.”

Mr Stephen sells his luxury fragrances at selected perfumeries around the UAE, including the House of Niche Boutique in Al Seef.

He relaxes by spending time with his family at home, and enjoying his wife’s India cooking. 

The specs
Engine: 4.0-litre flat-six
Power: 510hp at 9,000rpm
Torque: 450Nm at 6,100rpm
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Yahya Al Ghassani's bio

Date of birth: April 18, 1998

Playing position: Winger

Clubs: 2015-2017 – Al Ahli Dubai; March-June 2018 – Paris FC; August – Al Wahda

PROFILE BOX:

Company/date started: 2015

Founder/CEO: Rami Salman, Rishav Jalan, Ayush Chordia

Based: Dubai, UAE

Sector: Technology, Sales, Voice, Artificial Intelligence

Size: (employees/revenue) 10/ 100,000 downloads

Stage: 1 ($800,000)

Investors: Eight first-round investors including, Beco Capital, 500 Startups, Dubai Silicon Oasis, Hala Fadel, Odin Financial Services, Dubai Angel Investors, Womena, Arzan VC

 

The Great Derangement: Climate Change and the Unthinkable
Amitav Ghosh, University of Chicago Press

The specs: 2018 Chevrolet Trailblazer

Price, base / as tested Dh99,000 / Dh132,000

Engine 3.6L V6

Transmission: Six-speed automatic

Power 275hp @ 6,000rpm

Torque 350Nm @ 3,700rpm

Fuel economy combined 12.2L / 100km

Jigra
Director: Vasan Bala
Starring: Alia Bhatt, Vedang Raina, Manoj Pahwa, Harsh Singh
Rated: 3.5/5
Updated: April 10, 2023, 3:37 AM