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Tesla plans to build a huge factory in China with an annual capacity of 500,000 cars. This is the largest measure taken by the Ilean Musk company outside of the United States. The electric car maker has signed a memorandum of understanding with local authorities in Shanghai, and Bloomberg said that CEO Ilin Musk was in town on Tuesday. Tesla representatives in China did not want to comment, and so far there is no information on when the project will be implemented
The market expansion and the trade war [19659006] Tesla has been working regularly for more than a year to establish in the Chinese market. Donald Trump is trying to encourage production in the United States. Tesla, however, follows the example of Harley-Davidson, extending beyond the country. This is an appropriate solution as one can not predict what consequences the escalation of trade war can bring to businesses, badysts say. Tesla's stock rose 2.7% after achieving its intention of entering the Chinese market and closed Tuesday trading at $ 322.47
The youngest automaker US seeks to develop capacity and more effectively reach global markets. The electric car badembly plant is located in Fremont, California, and the "Giga" battery factory is located in neighboring Nevada. After joining China, the largest electric car market in the world, the company announced that it would complete its project to build a plant in Europe by the end of 2018.
Tesla announced a year ago the company is working with the Shanghai authorities on a production survey. Last week, in response to the US imposed duties China brought import duties on cars produced in the United States to 40%, compared with only 25% in the United States. ;last year. This forced Tesla to raise prices. The opening of a factory in China would reduce the supply cost of the American company
The ambitions of Tesla
The company has increased the prices of Model S and Model X in China $ 30,000 after the imposition of additional duties by Beijing cars. For this reason, cars become less affordable for consumers in the market in China
In November, Muk said that the company would be able to impose in three years on the largest automotive market of the world. "The plant will produce hundreds of thousands of cars a year for buyers in China and in other parts of Asia," he said. Tesla will likely offer its smallest Model 3 sedan and the next Y model crossover in China instead of its more expensive models, which often sell for more than $ 100,000 in the United States.
Increasing interest in electric cars in China
China is a great opportunity for Tesla to compete with companies such as BMW and Daimler, which are also looking to take advantage of the booming market. New car sales in China – a category including rechargeable batteries and fuel cell cars – reached 777,000 units last year and could exceed 1 million this year, according to the China Association of Producers [19659017] The government aims to achieve sales of 7 million vehicles annually by 2025.
Tesla sold 14,779 vehicles to China last year, according to LMC Automotive data. This represents 3% of the country's electric vehicle market, placing the company in 10th position in this segment. China contributes 17% of Tesla's revenue for 2017
