40% Cheaper Tesla EVs Prompts CEO Musk To Commit To Chinese Production – Soon

APR 22 2014 BY JAY COLE 13

Spotted: A Tesla Model S In China

Spotted: A Tesla Model S In China

One definite thing about the automotive market in China is that in order to sell cars in any volume in the country, you have to make them in the country.

Seeing Tesla Model S Sedans In The Wild In China Will Become More Common Starting This Month

Seeing Tesla Model S Sedans In The Wild In China Will Become More Common Starting This Month

So when Tesla CEO Elon Musk told the world Tesla had big manufacturing plans for China on Monday at the Geekpark Conference in Beijing, it was no surprise.

In fact, only a few months ago Mr. Musk stated that there was “no question” Tesla would have a factory in China at some point.

Now, as the Model S is just going on sale in China, the CEO says that the company will be making cars in China in the nextthree to four years.”

Additionally, Bloomberg reports that Tesla is planning a “big” network of Supercharging stations in China.

Although these are quite likely to not dot the country as is the case in the US and Europe, but be located in EV hot-spots like Beijing, Shenzen and Shanghai.  In total several “hundreds of millions of dollars” will be invested in China.

“At some point in the next three or four years we’ll be establishing local manufacturing in China. China is very important to the future of Tesla. We’re going to make a big investment in China in terms of charging infrastructure.” – Musk at Geekpack Conference

Tesla Model S Meets The Great Wall

Tesla Model S Meets The Great Wall

The benefits to building locally have been well illustrated in the past, and in the case of Tesla with the Model S, would allow the company to not only sell the car (currently starting at about $118,000) for 25% less by avoiding the import tax, the all-electric sedan would also qualify for up to $19,000 in regional plug-in incentives.

And the difference between selling a 85 kWh Tesla Model S at an end cost of $118,000 vs say around $69,500 is more than enough to prompt Tesla to start building cars inside the world’s largest automotive market.

Bloomberg

Categories: Tesla

Tags: ,

Leave a Reply

13 Comments on "40% Cheaper Tesla EVs Prompts CEO Musk To Commit To Chinese Production – Soon"

newest oldest most voted

Can we do that to sale cars in NJ? or China has more free market.

The powerful dealer lobby is turning the US is an increasingly hostile place for Tesla so sadly it’s definitely wise to try to be less dependent on the home market. Without a retail infrastructure that suits Tesla’s needs properly the home market potential of Tesla is shaping up to be limited.

Musk also said this:
“We are going to proceed with at least two locations in parallel, just in case one of them encounters some issues after breaking ground,” Musk said. He said Panasonic was likely to be Tesla’s partner in battery production.
Concerning the giga-factory. I don’t know but it seems Musk is not eliminating any of the 4 states he says are in contention for the big factory. So by suggesting that ground will be broken in two sites he is dangling that carrot in front of the legislatures in those hostile states, while at the same time hopefully their feet will be held to the fire by well informed constituents in those states, demanding they treat
Tesla with proper consideration.

That’s pretty big news IMO.

I still bet on Nevada. but the competition is where it is at. Let’m get on their knees and beg.

It will be easier for the Chinese to copy the Model S or X, after production starts… *shrugs*

if they haven’t already….

Big deal… 😛 It’s easy enough to take it apart and reverse engineer it anyway. It would take too much money and too much effort for anyone even trying to do replicate it perfectly. And even if they did it wouldn’t be cheaper than what Tesla can do themselves and it defeats the purpose of copying it.

Only thing trying to copy does is to catch up faster but it takes time to get your own development and quality. Just look at the once very crapy Japanese car manufacturers.

And to honest the US have done and still do more than their fair share of industrial espionage so if someone would do a small part of that against them it wouldn’t be more than fair anyway.

I wonder if Tesla will have to sell through CDA?

China Dealers Association.

😛

I doubt any dealer will be interested in the extra headache to sell such low volumes of 100 cars per month in entire country.

Uh… You READ the article, right??? Domestic production in China drops the price drastically– for sales greater than 100 units a month. 😛

100 cars per month? What have you been smoking and where did it go wrong?

They will probably not get more than 1000-2000 cars per month because of the limitation in production in the US.
But in 3 years it will probably be closer to 10 000 cars per month and thats when a factory is needed to boost production and sales even more.

I’m okay with all of what was said about making cars in China for the Chinese market, and I’m still looking forward to buying an American made Tesla when the lesser expensive model arrives in a few {long, long} years.

No problem buying a Prius made in Japan, no problem buying a Tesla made in China. What counts is keeping the quality and having the lowest possible price. On environmentally important tech, the cheaper is better be it solar panels, heat pumps or electric vehicles.
Btw I would buy a Tesla made on Mars if it would happen to be cheaper, although I doubt it would be.