5 things to know about Tesla's China plans

5 things to know about Tesla's China plans

The milestone has been viewed as integral to CEO Elon Musk's Silicon Valley auto concern as it fights against new competition and makes a major stride into the mass market with its new sedan.

USA carmaker Tesla Inc. will open its first overseas plant in Shanghai, according to an agreement signed between Tesla and Shanghai municipal government on Tuesday.

CNBC first reported Tesla's troubles with the Fremont, California, factory suffering several fires.

The plant, located in the Lingang district, "will be a state-of-the-art vehicle factory and a role model for sustainability". The category - which includes battery-powered, plug-in hybrid and fuel-cell automobiles - reached 777,000 units a year ago and could surpass one million sales in 2018, according to the China Association of Automobile Manufacturers.

England v Belgium - Preview and possible lineups
Belgium managed to eke out a win thanks to an early surge where they dominated the Englishmen like it was nobody's business. Danny Rose and Phil Jones were liabilities defensively, but Ruben Loftus-Cheek and Eric Dier had good moments.

Under a major tax overhaul passed by the Republican-controlled U.S. Congress late a year ago, financial incentives in the way of tax credits that lower the cost of electric vehicles are available for the first 200,000 such vehicles sold by an automaker. The company last month told shareholders it was working with officials in Shanghai to establish a plant to build electric cars and battery packs intended for China. Tesla, though, will be able to operate independently thanks to a thaw in Bejing's stance on foreign automobile industry investment.

However, the choice of country is a very smart strategical move by Elon Musk. Doing so will give Tesla expanded global production capability as well as tariff-free supply in the world's largest electric vehicle market.

Tesla has delivered 200,000 vehicles in the United States, exceeding the threshold above which federal tax credits for EVs start to phase out, a spokesperson for Tesla said on Thursday-and its website has updated its incentives schedule. On the other hand, about 17 million vehicles are sold annually on the US market. China retaliated by imposing an nearly identical tariff, meaning Chinese consumers who want to own a Tesla will have to spend an additional $30,000. Last year, it had annual sales of $2bn, which is 90 percent more compared to the year before. Apple, for example, this week sought the arrest of a former engineer accused of self-driving vehicle technology that he was set to provide to a company in China. Tesla did not respond to questions about the whistleblower tip. According to Bloomberg, it had only $2.7bn in cash at the end of the first quarter.

Related Articles

  • North Koreans Miss Meeting About US Soldier Remains

    North Koreans Miss Meeting About US Soldier Remains

    Although Pompeo called the meetings "productive", North Korea said the lack of emphasis on security guarantees was "regretful". The United States sent a DNA sample of the South Korean soldier's remains earlier this year that confirmed him as Yun.
    You Should Stop Eating Kellogg's Honey Smacks

    You Should Stop Eating Kellogg's Honey Smacks

    The CDC says that regardless of expiration date, the cereal should be thrown away or returned to a retailer for a refund. At the time, there were a number of salmonella cases in New England, including five in MA and one in New Hampshire.
    Djokovic into Wimbledon semis like a man on a mission - Omni Sports

    Djokovic into Wimbledon semis like a man on a mission - Omni Sports

    Djokovic hasn't made a Grand Slam semifinal since the 2016 US Open (when he lost in the finals). It will be Djokovic's first semifinal Wimbledon appearance since 2015.
  • Thai boys rescued from cave mourn diver who died

    Thai boys rescued from cave mourn diver who died

    The boys' coach thanked "every ministry that helped me" and the prime minister, Thai navy SEALs and the doctors. About 4,000 volunteers were on Sunday taking part in a clean-up of the area around the Tham Luang cave.
    Croatia's Road To Final

    Croatia's Road To Final

    It's all in the past." said Modric, who was a child when his grandfather was killed and his family forced from its home. But credit to them, they're a top team and they'll be thinking that they should have gone further than they did.
    Ex-GOP lawmaker: Strzok hearing 'was a humiliating day' for Republicans

    Ex-GOP lawmaker: Strzok hearing 'was a humiliating day' for Republicans

    A congressional official in the room who was granted anonymity to discuss the proceedings, said Page refused to answer some questions.
  • Justin Verlander, Kate Upton expecting first child

    Justin Verlander, Kate Upton expecting first child

    Justin helped lead the Houston Astros to a World Series victory past year , and Kate was behind home plate to cheer him on. The Other Woman star announced the happy news in a post on Instagram on Saturday, as she showed off her small baby bump.
    BAP candidate among 128 killed in Mastung blast

    BAP candidate among 128 killed in Mastung blast

    A Pakistani mourns over a dead body of his family member who is killed in a bomb attack, at a mortuary in Quetta , Pakistan. Durrani is a candidate for Muttahida Majlis-e Amal, an election alliance of radical religious groups.
    All the funniest protest signs from Scotland's anti-Donald Trump protests

    All the funniest protest signs from Scotland's anti-Donald Trump protests

    Some held aloft signs that said "Even Hufflepuffs Dislike Trump", a reference to a school group in the "Harry Potter" book series. More anti-Trump protests took place in other parts of Scotland, including one with some 10,000 people in Edinburgh.
  • University Of Louisville To Remove Papa John's From Stadium Name

    University Of Louisville To Remove Papa John's From Stadium Name

    Schnatter, who appears in the chain's commercials and on its pizza boxes, remains chairman of the board at the pizza chain. On Friday, the Texas Rangers followed in the footsteps of the Marlins and the Rays, the Fort Worth Star-Telegram reports .
    'Unprecedented Level of Animus!' Strzok Gets His Smackdown for Anti-Trump Bias

    'Unprecedented Level of Animus!' Strzok Gets His Smackdown for Anti-Trump Bias

    But the report said it found no evidence of political bias in the FBI's decision not to pursue criminal charges against Clinton. Republicans, on the other hand, peppered Strzok with questions and expressed outrage that's been building for months.
    Trump admin claims it reunited all migrant kids under 5 with parents

    Trump admin claims it reunited all migrant kids under 5 with parents

    The government has until July 26 to reunite almost 2,800 other children, ages five through 17, now in its custody . Those separations occurred between early May and June 20 when Trump signed an executive order halting them.