Tesla wants to build up to 500,000 cars in China

10.07.2018

Tesla follows the example of Harley Davidson
Tesla wants to build 500,000 cars a year in China – and use punitive tariffs

Amid the trade dispute between the United States and China, the American electric car pioneer Tesla wants to build a factory in Shanghai. An agreement was signed Tuesday, announced the municipal administration. Every year, 500,000 vehicles must be produced in the factory. Tesla boss Elon Musk was also present at the ceremony.

Tesla plans to build its own factory in China for some time to capitalize on the growing electric car market. In addition, the company escapes in this way import duties of 25 percent for US vehicles, which were imposed during commercial litigation.

The weekend alone has increased Tesla
The stock chart shows twice the prices in China ; the vehicles are now 70% more expensive than in the United States.

Tesla follows with this approach, the motorcycle manufacturer Harley Davidson, who announced during the dispute the transfer of production abroad, US President Donald Trump 25% of punitive tariffs are applied.

Tesla has long been planning to set up its own production site in China. Efforts have so far been unsuccessful. Because the boss of Tesla Elon Musk had refused to enter the necessary joint venture with a Chinese partner. This has long been rejected by the Chinese government until it announced in April that foreign ownership restrictions would be lifted for electric vehicles. If Tesla with its factory in Shanghai, which should be ready in two years and start production around such a joint venture, was still open Tuesday.

Read also: Tesla raises prices in China as the leading automaker

China is a huge and highly challenged electric vehicle market with many domestic manufacturers. Production in China would make Tesla more competitive: recently, due to the US-China trade dispute, the company had to raise its prices by tens of thousands of dollars to recover its prices