Tesla VP Discusses Possible Factory In China To Meet Model 3 Demand – Video Interview

2 years ago by Steven Loveday 26

Tesla John Mcneil 2

Tesla VP For Global Sales And Service, Jon McNeill

McNeill begins by explaining Tesla’s bio weapon defense mode. He says that it will make the car’s air cabin quality as sterile as that of a hospital surgery room.

He also talks about the autopilot mode, assuring that it will reduce accidents. McNeill has had personal experience using the semi-autonomous feature in Beijing and notes that it will be very helpful there due to the high volume of traffic congestion.

McNeill tells the interviewer that measures are being taken to assure the timely delivery of the Model 3. The company is utilizing factories in California and Europe, but looking to expand. He concludes that China may be a prime location for such a factory.

Video Description:

Jon McNeill, head of global sales and service for Tesla, in an interview with Chinese broadcaster CCTV, discusses the Tesla Model X “Bioweapon Defense Mode” and opportunities in China. He hints at a possible factory in China.

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26 responses to "Tesla VP Discusses Possible Factory In China To Meet Model 3 Demand – Video Interview"

  1. Anon says:

    Well, they get a big price break “partnering” with a native automaker. And it’s pretty certain Tesla’s tech will then flow forth and be copied.

    That said, I’d prefer to have an American Made Tesla, for this side of the planet.

    1. Rob Stark says:

      Tesla has open sourced their patents.

      They want people to copy them and replace ICEv with BEVs in the market ASAP.

      1. Anon says:

        Corporate espionage will ensure that happens.

        1. arne-nl says:

          As Rob tried to explain, espionage is not necessary in the case of Tesla. They give their technology away to anyone who wants it.

          1. Anon says:

            Maybe you didn’t catch that I hadn’t disagreed…

  2. Trollnonymous says:

    Hope they don’t import any China made Teslas.

    That would put them in the same boat as lousy GM where they BK’d and sucked up the bailout money then shipped the manufacturing jobs to china for the PHEV Caddy all so they can ship/import the PHEV caddy back here.

    GM……..lol, What a slap in the face of Tax payers.

    1. Rich says:

      USA manufactured Tesla cars will be sold in the USA. Chinese manufactured Tesla cars will be sold in China. Tesla is focused on sustainable manufacturing practices. Local manufacturing lowers the carbon footprint.

      1. Holger says:

        Main reason is to reduce the exchange rate risk.

        1. Rich says:

          Carlos Ghosn’s (CEO of Nissan) certainly communicates exchange rates as a core reason for local manufacturing.

        2. Jychevyvolt says:

          Main reason is import duty.

      2. SparkEV says:

        I suspect the reason is for taxes. China charges HUGE taxes for imported cars.

        1. Anon says:

          Yes.

          About $2k over the sale price of a Model 3 for each imported Model S, for example… Or, $37,000 US.

    2. Rob Stark says:

      GM thinks they can sell 10k CT6 PHEVs in China per year and 1k CT6 PHEVs per year in the USA. Ergo it does not make financial sense to manufacture in the US.

      Demand for Model S, Model X and reservations for Model 3 are greater in the USA than China.

      When Chinese demand for Teslas as whole are 200k/year they will open a factory in China for local demand.

    3. ModernMarvelFan says:

      “That would put them in the same boat as lousy GM where they BK’d and sucked up the bailout money then shipped the manufacturing jobs to china for the PHEV Caddy all so they can ship/import the PHEV caddy back here.”

      So you are having problem with GM importing 0.1% of its sales from China but has no problems with other automakers closing plants that build significantly higher % of its fleets overseas?

      GM has the HIGHEST NUMBER OF MODELS on the list of vehicles with highest domestic contents.

      Then again, facts aren’t your thing.

  3. ffbj says:

    Well, that very well may be. Mmmm, you could perhaps obfuscate a bit more. Going into China is like is going into Wisconsin. It usually turns out worse than you thought it would.
    https://www.youtube.com/watch?v=765b-T5P450

  4. tftf says:

    Factories in Europe, Asia…plus some new battery plants next to them.

    Tesla is overpromising again.

    These projects will require $10-20 bn in new cap-ex, they don’t even have the money to finish the first Gigafactory in Nevada without new debt/dilution.

    1. TomArt says:

      If deliveries are on schedule and there is no catastrophic issue, then the factory will be needed and they’ll have the demand to support any expansion.

    2. FFE1 says:

      I just love objective posts with no agenda- yeah – Tesla haters are becoming few and far between as most people appreciate the superlative engineering, quality, and innovation of their products. The model 3 will outsell all other EV brands combined by numerous times over. Sorry about your Tesla stock short calls – you better make as much money as you can before the storm becomes unleashed.

      1. tftf says:

        “appreciate the superlative engineering, quality,…”

        I’m not sure if you have seen early Model S and X quality issues.

        That QC wouldn’t even be ok for a cheap CPO car, let alone a new car selling around or above $100k.

        Tesla has and will have massive challenges ramping up and becoming profitable.

        That’s facts and stats (see CR pulling their earlier Model S recommendation and angry Model X owners in forums…), not hating.

  5. Get Real says:

    I can’t help but notice that tftf is once again posting his anti-Tesla BS and he has once again neglected to disclose here that he is short on Tesla.

    I guess he is in denial that Tesla has over 15 BILLION DOLLARS in pre-orders and that alone means that they will have no problems getting financing to further their already rapid expansion.

  6. ModernMarvelFan says:

    “He also talks about the autopilot mode,”

    So, autopilot in Model S is learning Chinese? =)

  7. ModernMarvelFan says:

    Before most of you who has problems with this getting your panties all twisted up in a knot, Local manufacturing makes sense.

    For an international corporation which Tesla is slowly growing into, local manufacturing on multiple continents makes sense.

    China is the #1 auto market and arguably the #1 EV market as well. So, producing locally will save you money and hedge against currency exchange issues. On top of that, it will help with import taxes.

    That is why Tesla is looking at China and EU for potentially two more factors. That basically means that Tesla has 3 factories on 3 continents that accounts for 3 largest car markets in the world.

    It makes perfect business sense.

    Most of you remember Elon as an engineer or rocket scientist (he doesn’t have degree in engineering, but he does have a physics degree). But most of you forgot that he went to UPenn for Economics. So, he has perfect understanding on how global production and global economy works…

  8. georges says:

    LOL
    The apparent problem with the price discrepancy seems to be solved. Just make it in China. 🙂

  9. Nix says:

    Tesla will need a factory in China for the same reason they have a factory in the EU, and the same reason Toyota, VW, Honda, BMW, etc have factories in the United States. World trade laws universally favor local manufacturing.

    There really isn’t any point in whining about it. Every car manufacturing nation does it, including the United States.

  10. Peter says:

    Will this just be a ‘final assembly‘ facility, like their EU final assembly facility in Tilburg, The Netherlands? This was just made to avoid EU import taxes, but with most of the car still made at the US facility. Just enough final assembly going on at the EU facility to avoid EU import taxes.
    The cars for the two European non EU countries Norway and Switzerland are still fully assembled in the US because they don’t have the same import tax rules at the EU has: http://insideevs.com/teslas-new-tilburg-factory-now-open/
    This just confirms that this assembly facility was only made for for tax reasons.

  11. Get Real says:

    Yes Peter, cars assembled at Tilburg were mostly made in the US but that is not what we are talking about here.

    When Tesla is starting to sell in the hundreds of thousands per year it will start factories to build almost the entire cars in EU and China.

    They will do this to be more environmental and avoid shipping and exchange costs.