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Sunday, January 20, 2019 1:31:55 PM
Tesla is opening a factory in China is because the Chinese government provides large subsidies for buyers of all electric cars - making this a huge market and the fastest growing.
Quite a contrast to western economies where subsidies have been sharply curtailed.
Supplying cars made in Fremont California, Tesla sold $1 Billion of cars in China in 2016 and $2 billion in 2017 - which would be roughly 20,000 cars. Tesla has already installed more than 3,000 public chargers in China.
Producing in China and becoming a local Chinese brand is really important for Tesla because sales in China dropped 70% in October 2018 with the onset of the trade-war China's retaliatory 25% import tariff on autos. With the 25% tariff dropped as of January 1 sales should recover, but a local assembly factory hedges their risk as this conflict will continue for many years.
Any China trade agreement will have a periodic review to assure compliance, which won't come without drama.
This is a meet-up of Tesla X owners in Shenzhen - https://electrek.co/2018/02/23/tesla-china-double-sales-expanded/
Quite a contrast to western economies where subsidies have been sharply curtailed.
Supplying cars made in Fremont California, Tesla sold $1 Billion of cars in China in 2016 and $2 billion in 2017 - which would be roughly 20,000 cars. Tesla has already installed more than 3,000 public chargers in China.
Producing in China and becoming a local Chinese brand is really important for Tesla because sales in China dropped 70% in October 2018 with the onset of the trade-war China's retaliatory 25% import tariff on autos. With the 25% tariff dropped as of January 1 sales should recover, but a local assembly factory hedges their risk as this conflict will continue for many years.
Any China trade agreement will have a periodic review to assure compliance, which won't come without drama.
This is a meet-up of Tesla X owners in Shenzhen - https://electrek.co/2018/02/23/tesla-china-double-sales-expanded/
We've run out of other people's Social Security taxes needed to subsidize our low income tax rates.
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