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Tesla Building Electric Car Factory In China

24 October 2017

Tesla reaffirmed on Sunday that it is in discussions with the Shanghai municipal government to set up an electric-car factory in the region. The WSJ's article cites reports from people who have been briefed on the company's plans to build the plant.

While the move would reduce Tesla's production costs, it will likely have to pay the 25% import duties that the Chinese government imposes on foreign vehicle makers, the WSJ report notes. Not only is China the world's largest auto market, but the government has aggressively moved toward incentives and policy to support the adoption of electric vehicles. The Chinese government wouldn't set such a precedent without careful consideration, though it did circulate a proposal on possibly allowing foreign EV makers to circumvent the partner rule if they build their operations in the country's free trade zones.

Although confirmation is still pending, the deal would allow Tesla to build a plant in Shanghai's free trade zone, where it will be able to cut production costs to better compete in the local market.

A Tesla spokesman didn't have a comment beyond reiterating the company's previous statement in June that it planned to "clearly define" production plans in China by year's end. "While we expect most of our production to remain in the USA, we do need to establish local factories to ensure affordability for the markets they serve".

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When you do call out for Alexa, the volume on the Sonos one will duck out to a lower volume so that you don't have to shout. So you can tell your Sonos One in your bedroom to play music in another room, i.e.: "Alexa, play Alanis in the kitchen".

Though Jason was in the only Tesla charging at the time the photos were taken, he tells Teslarati that the area is known for long charging queues and that he "can't wait to charge with 49 other Tesla owners".

Tesla has seen a boom in China sales over the past year, seeing revenue triple to $1 billion in the country. Specifically, having a base in China will give Tesla proximity to local suppliers, reducing production costs by as much as 50 percent, according to The Wall Street Journal.

The company's well known vehicle models included Tesla Roadster, Tesla Model S, Tesla Model x and Tesla Model 3. They point out that these posed problems for Tesla, which is looking to expand its presence in China's growing electric vehicle market without compromising its independence or intellectual property. The company has about 200 million electric two-wheelers, 3 million to 4 million low-speed electric vehicles and 300,000 electric buses too.

Tesla Building Electric Car Factory In China