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Elon Musk has confirmed today that Tesla is breaking ground on “Gigafactory 3” in China, following a deal struck with the Shanghai government in the summer to build a wholly-owned local factory.

The automaker has been trying to establish a manufacturing capacity in China amid a trade war between the US and China, accelerating plans for the construction of the factory. In October, Tesla secured a 210-acre site for the Gigafactory 3 and Musk has been working hard to progress things as much as possible.

According to the Mayor of Shanghai, Ying Yong, Tesla’s project should see partial operation by “the second half of next year,” which is great news for Musk, who expressed his excitement over Twitter earlier today.

“Looking forward to breaking ground on the Tesla Shanghai Gigafactory today!” he said, later adding that Tesla was “aiming to finish initial construction this summer, start Model 3 production end of year & reach high volume production next year.”



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