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posted by Fnord666 on Monday October 21 2019, @07:20AM   Printer-friendly
from the going-global dept.

Submitted via IRC for Bytram

China gives Tesla green light for production - Roadshow

Tesla put a major piece in its manufacturing puzzle in China with government approval of automotive production locally. The US-based electric-car maker is now officially part of the approved list of automotive manufacturers in the world's largest auto market.

Reuters first reported on the news after viewing a copy of list the Chinese industry ministry produced. The granting gives Tesla the certification needed to start local production, though it's not clear when that will begin. Tesla did not immediately respond to a request for comment.

The factory will be the first full-scale manufacturing plant outside of the US. Tesla does operate a "final assembly" facility in Tilburg, Netherlands, but the Chinese site is a key pillar in expanding the automaker's footprint in the country. Tesla vehicles are currently subject to auto tariffs; local production will element those taxes. China has also granted the carmaker assistance to expedite construction.

Reuters also reported production at the new factory could kick off this month.

From the Reuters article:

Tesla intends to produce at least 1,000 Model 3s a week from the Shanghai factory by the end of this year, as it tries to boost sales in the world's biggest auto market and avoid higher import tariffs imposed on U.S. cars.

The factory, China's first fully foreign-owned car plant, also reflects Beijing's broader shift to open up its car market.

Shanghai authorities have offered Tesla assistance to speed up construction, and China excluded Tesla models from a 10% car purchase tax on Aug. 30.


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  • (Score: 2) by etherscythe on Monday October 21 2019, @04:57PM (2 children)

    by etherscythe (937) on Monday October 21 2019, @04:57PM (#909915) Journal

    Just looked closer at your link. While technically the $7500 EV tax incentive technically went to the buyer of the car, the fact that Tesla dropped their price by exactly that amount as it expired tells me that they basically just got that much passed on directly from consumers. I'm a Tesla fan, but I'm not going to pretend they weren't scrabbling for the cash. I might have done the same.

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  • (Score: 2) by c0lo on Monday October 21 2019, @09:30PM (1 child)

    by c0lo (156) Subscriber Badge on Monday October 21 2019, @09:30PM (#910011) Journal

    That's like saying Target received tax money because the federal govt lowered taxes. Or grocery stores received tax money because of the food stamps.

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    • (Score: 2) by etherscythe on Tuesday October 22 2019, @06:49PM

      by etherscythe (937) on Tuesday October 22 2019, @06:49PM (#910483) Journal

      If Target raised their prices by the amount of the government tax break or food stamps, then yes it basically did get government money. We can't tell what the price would have been before the tax incentives with Tesla since they were there from the beginning of sales, but I suspect it's exactly what happened: Tesla banked on profit from the tax incentive and priced accordingly.

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