Tesla reportedly headed to China to build new factory

Oct 24, 2017, 00:41
Tesla reportedly headed to China to build new factory

This latest 50-stall Supercharger station and Tesla's pledge to install 1,000 Superchargers in China by the end of this year is a testament to the company's support of the world's largest auto market.

China is one of the biggest and fastest moving auto market in the world, and a factory in the region could assist the electric vehicle maker in gaining some traction in the country's EV market.

Elon Musk's Tesla electric vehicle company is reported to have struck a deal with Chinese authorities to build a factory in Shanghai, opening up the world's largest automotive market to the fast-growing business.

Tesla reiterated a statement from June that it is working with the Shanghai government to explore local manufacturing. The company is said to be in talks with the Shanghai government over the matter, with a deal expected to be reached by year's end.

If the deal is in place, it could be the ticket to igniting Tesla's Chinese sales - and the company as a whole.

Chinese internet company Tencent Holdings Ltd has a five percent stake in Tesla and is seen as a potential ally for Tesla's efforts to enter the Chinese market. What was not known until now is that Tesla will be the sole owner of the factory.

The new report comes after Consumer Reports said Tesla Inc's new Model 3 sedan is likely to have "average" reliability despite production snags because it uses older technology rather than newer innovations that are causing problems for automakers. For electric cars, that import tariff is set at 25 percent.

Persuading Tesla to manufacture cars within Shanghai, while at the same time pay tariffs on the same, would be a big coup for the government. It indicates that Tesla would be able to chop down some costs of production. TSLA reached a deal to begin building a factory in Shanghai's free trade zone, which is the first Hong Kong-like free trade area in mainland China. Then there are companies like Volkswagen that sell 11 million cars this year, and produce a profit of 13 or 14 billion euro.

China's home-grown manufactures now produce 43% of total vehicle sales in China but 96% of all-electric vehicles.

YOU MIGHT ALSO LIKE
  • First Lady Melania Trump Donates Inaugural Gown To Smithsonian

    First Lady Melania Trump Donates Inaugural Gown To Smithsonian

    "If some people don't want to dress the first lady , that's the beauty of freedom", Pierre told the Washington Post . Trump did not have a personal relationship with Pierre before asking him to design her inaugural gown.
    Turning on Project Loon in Puerto Rico - The Team at X

    Turning on Project Loon in Puerto Rico - The Team at X

    It sent five planes and almost 40 ships containing network supplies, equipment, vehicles and personnel to Puerto Rico and the U.S. Project Loon is a network of stratospheric balloons created to deliver internet connectivity to rural and remote areas worldwide.
    Aaron Rodgers sends out positive message following surgery

    Aaron Rodgers sends out positive message following surgery

    That means he will be ineligible to play for eight weeks and couldn't play again until Week 15 at the earliest. The procedure was done Thursday outside of Green Bay.
  • WWE TLC 2017: 3 Reasons Why Finn Balor Should Defeat AJ Styles

    WWE TLC 2017: 3 Reasons Why Finn Balor Should Defeat AJ Styles

    The announcement of Kurt Angle replacing Roman Reigns at this Sunday's TLC main event has temporarily turned WWE upside down . This will be the first time that Styles and Balor, both former leaders of the Bullet Club, have wrestled each other.
    Michigan Wolverines at Penn State Nittany Lions

    Michigan Wolverines at Penn State Nittany Lions

    The Wolverines return to the Big House next weekend for a matchup against Rutgers as they look to right the ship. The Wolverines pieced together two touchdown drives and cut the deficit to 14-13 with 1:45 left in the half.
    Facebook users can now PayPal in messenger

    Facebook users can now PayPal in messenger

    PayPal introduced a way to make payments online via Facebook Messenger during past year , allowing users to shop online easily. But, once your question proves too challenging for the bot, you will be connected with a live customer service representative.
  • BJP, Congress spar over Rahul Gandhi's Twitter popularity

    BJP, Congress spar over Rahul Gandhi's Twitter popularity

    He asked whether BJP can clearly say that none of the PM's tweets have been retweeted by handles from outside the country. She attached a report by the news agency ANI that said: "Bots behind the rise in Rahul Gandhi's Twitter popularity".
    Thomas shares lead with Brown in Jeju

    Thomas shares lead with Brown in Jeju

    Whee Kim (72) is tied for fifth at 6 under for the best finish among 16 South Korean players in the field. List had three bogeys on the front nine and a pair of double bogeys on the back nine.
    Katy Perry Got Stuck Floating in the Air During Her Concert

    Katy Perry Got Stuck Floating in the Air During Her Concert

    Rather than come down when it was supposed to, Perry was forced to make awkward small talk while swaying through the stadium air. Katy Perry performs onstage during her " Witness: The Tour " at Bell Centre on September 19, 2017 in Montreal, Canada.
  • General Motors Company (NYSE:GM) Signals 'Overbought' Based on Its RSI

    For the current quarter Ford Motor Company (NYSE:F) has high EPS estimates of $0.4 in contradiction of low EPS estimates of $0.2. Shelton Management reported 0.63% of its portfolio in Ford Motor Company (NYSE:F). "Don't Hold Your Breath" on October 19, 2017.
    'It's unfair' - Silva says Watford should have beaten Chelsea

    'It's unfair' - Silva says Watford should have beaten Chelsea

    Watford was the better side for much of the first period and netted a deserved equalizer in first-half stoppage time. David Luiz attempted to head the ball out but it dropped down for Doucoure to fire home through a crowd of players.
    Spanish Catalonia move likened to Franco

    Spanish Catalonia move likened to Franco

    Rajoy said elections had wide backing amongst Catalans who are growing frustrated with politicians' inability to end the deadlock. Article 155 allows central authorities to intervene when one of Spain's 17 autonomous regions fails to comply with the law .
popular