Tesla Looking To Construct Factory In Suzhou, China

1 year ago by Tesla Mondo 14

this-old-house-final-teslamondo

PLANS FOR CHINESE PLANT CIRCULATING

A project plan called “Tesla project for Suzhou” is bouncing around local media. Tesla’s local chief confirms the company is getting serious about Suzhou as the site of its crucial Chinese plant.

How crucial? It will drop the price of Tesla’s cars by a third, by chopping transport costs and avoiding tariffs.

*Tesla has not commented on the alleged meeting in China that took place on March 13.

Check out the full report on the Tesla meeting (and the steep tariffs the Model S faces) in China at the Global Times here.

Pin Denotes Location Of Suzhou

Pin Denotes Location Of Suzhou

*Editor’s Note: This and other Tesla-related posts appear on TeslaMondo. Check it out here.

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14 responses to "Tesla Looking To Construct Factory In Suzhou, China"

  1. wavelet says:

    Aren’t foreign manufacturers required to set up joint ventures with Chinese companies? That is, Tesla can’t simply build a Tesla-owned factory in China.

    1. Alex says:

      Only if you want to get the governmantal subsidy you must go a joint venture. Model S/X price no matter i think, only Model 3 it would be important.

      1. Mikael says:

        Why bother commenting when you don’t know what you’re talking about…

        1. Will says:

          Perhaps your own comment would have been more useful if you’d cared to correct him rather than just claiming he’s wrong and then leaving.

      2. Pushmi-Pullyu says:

        Hmmm, well I don’t know that much about setting up a business of this type in China, but certainly those who know more than I do about the subject don’t appear to agree with your assessment.

        Here are a couple of relevant quotes from a Wall Street Journal article on the subject, from October 2015:

        “Chief Executive Elon Musk said local production could cut sales prices of Tesla cars in China by a third, thanks to reduced shipping costs and avoidance of import duties.”

        — and —

        “Tesla, which is based in Palo Alto, Calif., may need to find a local partner to begin production. China currently prohibits foreign car makers from assembling vehicles in the local market without a Chinese partner, which can make it much more difficult to operate here.”

        Full article here: http://www.wsj.com/articles/tesla-plans-to-produce-electric-vehicles-in-china-within-two-years-1445602222

    2. evcarnut says:

      My buddy has a mold tryout company in China No partners,& No taxes of any kind..

  2. ffbj says:

    The corruption/bribery tax is probably slightly less than the tariffs and other taxes. Then you save on labor costs and transportation, as most vehicles made in China will more than likely stay there, or at least in the East.

  3. Mister G says:

    In the future Tesla vehicles will be made in China and assembled in America..and no American will care as long as the price is low.

    1. Gears says:

      Sad, but seems to be true

      1. QC says:

        Global production in China is loosing meaning every year
        I) The closer the product is produced to the consumption the place the better
        II) As automation increases the cost gap between China and US/EU decreases
        III) The brand premium / duties / logistic savings that comes with producing in U.S./EU is significant
        IV) Chinese living standards / salaries are increasing every year

        Thus I do think majority of Teslas will be produced close to their markets (China-Asia, U.S.-Americas, EU-EU/Russia). How many jobs are there compared to traditional car factory might be tragic but better than no jobs at all.

    2. Spec says:

      Yeah, that is sadly probably true.

  4. Pushmi-Pullyu says:

    This wouldn’t be a surprise, if true. Elon or some other Tesla spokesman has previously mentioned the possibility of building cars in China for the Asian market.

  5. leafowner says:

    Cars make sense to assemble locally — end of story.

  6. Spec says:

    Lol at the image.