Tesla outsourcing to China in the next 2 years

Well, it was only a matter of time. financially, it makes sense. logistically, even better.
I think this move is a pre-cursor to Tesla tackling the European Market big time, (and have a stronger presence in the Asian market.)

---- That doesnt bode well for the American economy when American car manufacturers are defecting to overseas in search of cheap labor and 'malleable' emissions control 'guidelines'(not in Tesla's case). at least we can expect to see mroe competition and say 40k-60k luxury electric sedans in about a decade.

SHANGHAI—Luxury electric-car maker Tesla Motors Inc. plans to begin production of its $76,000 and up vehicles in China within two years, where the government is vigorously promoting reduced-emissions vehicles.

Chief Executive Elon Musk said local production could cut sales prices of Tesla cars in China by a third, thanks to reduced shipping costs and avoidance of import duties. Mr. Musk’s remarks were made at a forum on Thursday at Tsinghua University in Beijing.

In China, the company’s Model S sedan price starts at 673,000 yuan, about $106,000, including duties and other taxe

Source: WSJ


mods: please move if in the wrong forum.

double


wow, is the site still under attack. posting is out of wack

a reply to: odzeandennz

In related news, Tesla files for a name change to "Tesra".

Oh shut up, you were thinking it.

Tesla is said to come out with a 35k P model in 2017 so I think the electric car is coming much quicker as a common car on the road then what you might think.

originally posted by: HighDesertPatriot
a reply to: odzeandennz

In related news, Tesla files for a name change to "Tesra".

Oh shut up, you were thinking it.

That will be the Chinese knock-off...

originally posted by: HighDesertPatriot
a reply to: odzeandennz

In related news, Tesla files for a name change to "Tesra".

Brilliant haha

originally posted by: HighDesertPatriot
a reply to: odzeandennz

In related news, Tesla files for a name change to "Tesra".

Oh shut up, you were thinking it.

I have to admit, that was funny.

a reply to: HighDesertPatriot

hehehe. i was not not thinking about it.

a reply to: odzeandennz

if that's what is going to take to mass produce and make them hopefully more affordable,,,have at it. We can cry all we want that this stuff should stay in the US but I'm sure there is a big concern around the unionization of his company which means a lower quality around manufacturing...now if he was able to have the process completely automated then by all means keep it in the united states...

Haha, they have quality and reliability issues now. Wait till they build the cars in China.

a reply to: Bluntone22

Thats true. Im in OC CA, and after the consumer report came out that the new Tesla model tested so high that they needed a new 'Testing Rubric', i was tempted to trade my 2 current vehicles to try to afford one. BUT, it seems it was just a ruse to boost their stocks. Yes, Tesla is as devious as other companies.

The Tesla Model S P85D did so well on the Consumer Reports testing rubric that it broke the organization’s rating system on its way to earning the highest score of all time. The model stood out thanks to its near-instant acceleration (0-60 mph in 3.5 seconds in silence), an excellent 87 mpg equivalent, and a blend of “practicality and luxury.” But after collecting new information calling the Tesla’s reliability into question, Consumer Reports has pulled its recommendation.

Tallying up 1,400 surveys from people who have owned a Tesla Model S from the last three model years, Consumer Reports found problems with charging, sunroof leaks, door handle malfunctions, and drivetrain issues that required “full-blown replacements of the car’s electric motors.” In a video released on Tuesday , Consumer Reports director of auto testing Jake Fisher said:

“This extensive data allows us to forecast that owning a Tesla will likely mean worse than average reliability, a decline from last years average prediction… As a result the Model S will not receive the ‘recommended’ designation, even though it did so well in our separate road test evaluations. To be recommended a vehicle has to meet stringent testing, reliability, and safety standards, including having average or better predicted reliability.”

i dont think there's such a thing as a good 'BIG' company.
stocks fall after 'new' report

a reply to: odzeandennz

Hmmm sounds like someone isn't greasing the right pockets as much as other someone's.

Hey Ford GM Chrysler when you gonna put out an all electric luxury car?
"Oh...prolly in a couple years after the pioneers at Tesla are dealt with"

x

a reply to: odzeandennz

I don't get the impression that Tesla has any plans to actually "outsource" production of their cars.

What they're talking about here, (which is building their product in the same economy it's destined to be sold in) should be mandated in all trade agreements.

I don't have any qualms about foreign car companies selling their cars here in the U.S., so long as they build those cars here in the U.S.. And if Cadillac wants to sell cars in China or Japan, they should build those cars there as well.

It's the only way to insure that our manufacturing base remains strong and vibrant while preventing multi-national corporations from pitting the economy & standard of living in one country against that of another.

"If you want to sell it here, build it here" and the same goes for those who want to sell it there. It's really pretty simple.

In cases where it just can't be done, any country importing goods from a country with lower standards of living should be allowed to tax the imports at a level sufficient to offset the difference.

Anyway, I don't get the impression that Tesla has any plans to build cars in China for export to the U.S.. At least I hope they don't.

I'm not surprised that they're expanding their production capacity; especially to China, where they can do it on the cheap. Currently Tesla produce only luxury electric vehicles in small numbers, but they're due to enter the mass-market in 2018, with the Model 3. There's no way they'd manage the huge increase in demand with their current facilities.

a reply to: odzeandennz

I don't think Tesla is actually "outsourcing" their cars to China.

They're going to build cars in China that are to be sold in China, not exported back to the U.S. for sale here. There's a big difference.

This is exactly what companies should do, which is to manufacture their products in the same economy they're to be sold in.

No different than Toyota building a plant to make cars in the U.S.A., for sale in the U.S.A..

This principle should be mandated in every trade agreement that exist. It's the only way to protect your jobs and standard of living.

a reply to: Flatfish

That makes me wonder if the arrival of Tesla in China could really help electric cars take off over there. The air quality in Chinese cities is some of the worst anywhere in the world, so the sooner, the better.

originally posted by: plainsailing
a reply to: Flatfish

That makes me wonder if the arrival of Tesla in China could really help electric cars take off over there. The air quality in Chinese cities is some of the worst anywhere in the world, so the sooner, the better.

I think that's the goal for both, Tesla and China. It's my understanding that the Chinese govt. is supportive for that very reason, to combat the smog issue.

And if China's recent capitalistic history has any merit whatsoever, they'll be copying Tesla's ideas inside of a year or two and they'll be throwing their own knock-off versions onto the market as well.