Tesla Model X In China

Tesla Model X In China

Tesla Model 3

Tesla Model 3

With China being second only to the U.S. in Model 3 reservations, Tesla says it's beginning to make more sense to construct a factory in China.

Ren Yuxiang, Tesla’s Asia Pacific boss, confirmed that China is #2 for reservations, but wouldn't disclose exact regional figures.

Tesla's J.B. Straubel "told China Daily newspaper in Germany on Thursday that once he sees a greater uptick in sales for the new and more moderately priced Tesla, then an assembly line starts to make sense," according to a report by Forbes.

By building the Model 3 in China, Tesla would be exempt from charges placed on imported cars. However, China requires automakers to form partnerships with local companies in order to sell in China.

Forbes adds:

"Speculation that China would get a Tesla factory began last month when Jon McNeill, Tesla’s president of global sales, said that the EV maker’s No. 2 market was a potential candidate for an assembly line."

China's booming electric car market makes it a prime location for Tesla's second factory, but partnering with a local automaker is probably not in Tesla's best interest. Perhaps Tesla could find a way to have that requirement lifted?

Source: Forbes