Will Tesla Share Technology With China?

Tesla

JUL 13 2018 BY STEVEN LOVEDAY 42

As Tesla moves forward with plans to build a factory in China, technology sharing is “subject to negotiation.”

Following the permitting and approval process, Tesla will begin construction of its second automotive-manufacturing facility. It will be the first Tesla factory outside of the U.S., and potentially one of a number of facilities that may pop up around the globe in the future.

If everything goes as planned, the automaker could be producing vehicles at the plant in China in about two years. However, Tesla admits that it will be an additional three to five years before the factory is able to reach its planned 500,000 unit yearly capacity.

China has made it clear that it will attempt to be a major global force in the electric vehicle segment. In order to dominate, companies are expected to research the work of related organizations and utilize ideas from foreign partners. According to a Bloomberg survey, approximately one in five U.S. companies with operations in China have been asked to share technology among Chinese partners.

This week, during a briefing in Shanghai, deputy chief of the city’s economy and information technology Huang Ou shared words about the upcoming venture with Tesla. When asked if the original agreement maintains that Tesla will be transferring technology to China, Ou replied:

For technology transfer, it is a matter subject to negotiation between the enterprises.

Huang was also questioned about the overall monetary investment. He explained that it will be the largest foreign-invested project of its kind in the history of Shanghai, with Tesla spending a minimum of $10 million in the first phase, which includes a battery Gigafactory.

Source: Bloomberg

Categories: China, Tesla

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42 Comments on "Will Tesla Share Technology With China?"

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Vexar

This may be the first situation where someone actually licenses Tesla patents. You know, because none of the auto manufacturers wanted to use the Supercharger network, and Mitsubishi and Daimler no longer wanted Tesla drivetrains.

lamata

None Of the other Manufacturers Are Not Allowed Therefore Cannot Use The Super Chargers.. Super Chargers Are Built Exclusively For TESLA USE ONLY …So If you don’t Own a Tesla ….Sorry About Your Luck…………………lmao

Pushmi-Pullyu

I’m going to avoid a partisan political diatribe here, as that would set a negative tone for the entire discussion.

Let’s just say that altho I am very far from being a supporter of the Trumpian administration, I hope that there will be at least one good outcome of this trade war, despite how poorly (to put it politely) it has been executed on our side. That is: I hope the U.S. can force China to end its policy of requiring foreign companies to share their IP if they want to set up a factory in China.

But I doubt this trade war is going to be settled soon, and Tesla needs to start building its China factory as soon as possible.

Mister G

If you don’t share it China will clone it anyway LOL, 10 years from now we might be buying Teslas made in China for half the price. Look at the iPhone if it were made in USA it would $3000.00 CONNECT THE DOTS ON CLEAN AIR WAKE UP FOLKS THANKS CO2.EARTH

Adam

That’s only true if the IP is passed, if Tesla manufactures everything in house then their IP should be safe. The problem arises when data is stolen or a third party manufactures parts for you. If Tesla has a third party manufacture the motors, then those motors will be found on the market a few weeks/months later.

earl colby pottinger

One thing I consider possible, the batteries. Instead of letting the Chinese see Tesla/Panasonic battery designs, they can just use Chinese batteries in the cars there. As long as they stay away from the UltraFire brand they should be okay.

Will

It’s china we are talking about. They just buy one and deconctruct one to see how everything works

antrik

Which is, as we know, exactly what the *German* car makers are doing with Teslas…

rjt

Why don’t you go and visit Beijing to experience the “CLEAN AIR” ignorant troll?

Mister G

No thanks, I don’t want to inhale dirty toxic air in Beijing and I don’t want it in the USA CONNECT THE DOTS ON CLEAN AIR WAKE UP FOLKS

antrik

An iPhone costs less than $300 to make; and of that, some $8 is labour costs.

The main reason high-tech companies keep producing in China nowadays is that all their suppliers are there.

Mister G

Wait a minute, an iPhone costs $300 to make where? USA or China? I’m guessing $8 labor is in China. Where Foxconn pays $300 monthly salaries to make iPhones and other electronic devices. And Foxconn sets up nets to catch its workers that attempt to commit suicide. The truth is Americans want low prices and that is why China makes all of our stuff BELIEVE ME

antrik

Yes, labour cost in the US might be $30 or so instead. That wouldn’t significantly change the price of the whole thing.

(Typical monthly salaries in Chinese economic centres are way higher than $300 by now… Something around $1,000 as far as I can tell from a quick google.)

SparkEV BoltEV

Is it so hard to copy a Tesla? Chinese can simply buy it and copy. There are services that allow copying micochips by etching away layer by layer. By comparison, copying big things like circuit boards and motors and (gaping) body panels seems trivially simple.

ModernMarvelFan

You are right that they can easily reverse engineer the design. However, there is a difference between figuring out what design is and build a supporting industry that will allow them to build a competitive product. The latter takes time to build and lots of engineers.

Will

They have space program with aim on landing a man on the moon. They have engineers

BroncoBet

The Germans said of Hitler,yes,but he made the trains run on time,China should have been punished long ago, we can ratchet up this trade dispute 10 times, but Trump just wants to make a deals does everyone else.
China would love a Tesla pant but who would finance it? No one, under current ownership,Elon would have to bow out or allow a China Tesla that would;d be separate Chinese owned and just pay a small fee to Tesla.
Same China factory announced every year for the last five.

Mister G

Share it because they will clone it anyway LOL CONNECT THE DOTS ON CLEAN AIR WAKE UP FOLKS thanks co2.earth

Derek

Can’t this site ban this trolls IP address or something?!?

CDAVIS

Article title: “Will Tesla Share Technology With China?”
——————-

What is not shared with China will be stolen by China… State owned Red Army China Automotive Inc. will benefit greatly from Tesla’s innovations at a very low IP acquisition cost.

This is true irrespective of Tesla building a factoty in China.

The only way Tesla can maintain a technology lead is to maintain Tesla’s very high rate of innovation… all industrial static technology moats across all core industrial categories are in constant process of being replicated by China Inc.

ModernMarvelFan

Elon already said that he is willing to share Tesla IP with anyone who is willing to make a good EV.

If Chinese is “stealing” the IP for the sake of making a good EV, then it would naturally fall within the Elon claim. So, there is NO risk in “sharing” IP with the Chinese.

Pushmi-Pullyu

Yup. China uses its military intelligence hackers for industrial espionage on a daily basis. If China really wants Tesla’s tech, they can probably get anything they want that anyone has ever recorded in a computer.

https://www.justice.gov/opa/pr/us-charges-five-chinese-military-hackers-cyber-espionage-against-us-corporations-and-labor

Will

Build it Taiwan since the day its part of China

Seven Electrics

Doesn’t matter if they agree to or not. All Chinese employees should be considered to share information with the country’s intelligence services. State sposored corporate espionage is very real in China.

G2

*THIS* is actually a true statement. For those following along at home, mark your calendars.😀

Pushmi-Pullyu

Hey, Eleventy Pretend Electrics also posted something just the other day which was also true! He’d better sit down and rest; no doubt saying two true things within just a few days is a horrible strain for him! 😉

ffbj

It’s not all, just people in key positions. Of course you can always volunteer.
I had a client who was put away for 20 years, because he would not spy on his fellow workers, also he complained when a political person was appointed to oversee his engineering section, which he argued was stupid. Finally he was dating a girl that was in the Party, which was a no-no.
So they put him away for 20 years, he said it was not like a prison, more like a Holiday Inn, without a pool.
One day they came to him and let him go saying, we made a mistake.

Mark.ca

He finally said something true…

CDAVIS

@Mark.ca said: “
He finally said something true…”
———

Yes… odd behavior for Seven Electrics.

Daniel S

$10 million? Not such a much…

antrik

Yes, it says $10 *billion* in the source article.

(But it’s not any sort of official statement; just a guess from Bloomberg.)

(⌐■_■) Trollnonymous

Aren’t Tesla’s patent open for anyone to use?

Pushmi-Pullyu

Not unless they agree to Tesla’s terms for such “free” use. There are a lot of strings attached! Some might call such terms a “poison pill”.

https://www.tesla.com/about/legal#patent-pledge

Will

Bullet points

antrik

AIUI, it’s essentially just a patent pool: you can use ours if we can use yours.

(Also, I don’t see how this has anything to do with a “poison pill”…)

Nix

Tesla has already offered to share all of their IP with any car maker.

Benz

How large is this Shanghai Gigafactory going to be (in square meters)?

Pushmi-Pullyu

Breadbox < Shanghai Gigafactory size < planet Earth

Will

Why not. It’s open source anyways? The more people that build EV the better it is for us

antrik

The source article says additional 2-3 years, not 3-5 years, to reach 500,000/year.

(Also, it says $10 *billion* — and it’s just a guess by Bloomberg, not part of any official statement.)

BroncoBet

If everything goes as planned!! That is so funny, someone really has a sense of humor, if manna drops from heaven we won’t starve,I’m sure Tesla knows that they aren’t building plants in China or anywhere else.

Windbourne

If Elon has actually made a mistake, it is in bringing a factory to China. He will share the technology no matter what. Just ask TransRapid. Hopefully, he puts in his OLD manufacturing stuff and leaves the best for other plants.