The head of Tesla, a leading electric car maker, has reported on the company’s intentions to establish a new Megafactory in China that will focus on the assembling of Megapack energy storage. Employing this strategy puts Tesla on a pedestal to highlight its readiness and willingness to penetrate further into the burgeoning renewable energy business in China.
The choice of opening Megafactory in China is quite logical as Tesla realizes impressive growth rates for energy storage in the country. Hoping the demand for clean energy and the developing policies for encouraging renewable energy usage, China is identified as the ideal ground for Tesla to enter the market.
Megapack is Tesla’s product that consists of battery energy with storage and distribution of energy derived from renewable sources like solar panels and wind turbines. The fact that it is scalable and has a large energy output means that it is ideal for use in utilities as well as in balancing the grid and for backup power.
Tesla has hope to achieve a competitive advantage of its Megapack manufacturing through shifting production to China, including; cost, supply, and operational efficiencies. Also, the strategic location of Tesla in Asia ensures operational efficiency near the important markets and flexibility in catering for customer requirements and exploiting any opportunities in these markets.
Tesla aims at making conscious steps towards the future world by establishing a new Megafactory in China, which will strengthen its positions in the sector of renewable energy. Since establishing its presence on the international market, Tesla has demonstrated tremendous technological advancement and a focus on the transformation of the global energy system into more sustainable forms.
With Megafactory under construction, it is widely expected that Tesla production capacity has significantly increased together with its market reach, overall sales, as well as a boost to China’s renewable energy targets. Given the key part that the Megapack is likely going to occupy in the shift towards clean energy across the globe, the decision to invest in a new Megafactory will go a long way in helping Tesla achieve this goal.