Tesla said to be working a deal to build $9 billion factory in China

[midian182]

Six months after Elon Musk said his company planned to build a manufacturing plant in China, it appears that he has picked Shanghai for the location of the new $9 billion Tesla factory, according to a report in Bloomberg.

A “person with knowledge of the matter” who does not wish to be identified claims the government-owned Jinqiao Group has signed a non-binding agreement with Tesla to build the production plant in the Chinese municipality.

The deal could see both companies invest around 30 billion yuan ($4.5 billion) in the project, with the Chinese firm putting up land for most of its share. Bloomberg notes that if this is the case, the investment will be larger than Walt Disney Co.’s $5.5 billion Shanghai theme park.

Part of the reason Tesla requires a new manufacturing location is due to the huge demand for the upcoming Tesla Model 3, which received nearly 300,000 pre-orders just three days after being unveiled.

Basing the plant in Shanghai will allow Tesla to avoid China's 25 percent import tax, which it currently pays on every vehicle shipped into the country.

There’s still been no official announcement of the agreement. Shanghai Jinqiao Export Processing Zone Development Co, a publicly traded unit of Jinqiao Group, said its parent company hadn’t signed any documents relating to a Tesla factory in China, but shares in both firms increased following news of the rumored deal.

“This would be a major win for Tesla and Shanghai,” said Steve Man, an auto analyst at Bloomberg Intelligence. “The investment will probably include a nationwide dealership network, superchargers, R&D center and potentially a second ‘Gigafactory.”

Tesla spokeswoman Khobi Brooklyn said the company wouldn’t comment on “rumor and speculation.”

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https://www.techspot.com/news/65350-tesla-china-build-9-billion-factory.html

 

[mosu]

So every replacement part will be genuine, even if it's "made in China"( or PRC ?).

 

[Skidmarksdeluxe]

So every replacement part will be genuine, even if it's "made in China"( or PRC ?).

Maybe not if you buy it from a homeless Chinese street vendor.

 

[davislane1]

Basing the plant in Shanghai will allow Tesla to avoid China's 25 percent import tax, which it currently pays on every vehicle shipped into the country.

And what percentage of those vehicles will be shipped back stateside? Not only will Tesla not have to pay the import tax, they're going to increase their margin in the U.S.

 

[Uncle Al]

Well, he's convinced me now that he is truly stupid. Any businessman knows that building any kind of factory in china leads to your product being made and sold at 20% of what you can make it for; gets flooded into the American market and will drive you out of business. Of course, maybe that is his long term plan????

 

[captaincranky]

Isn't anybody as sick of hearing about this a**hole as I am?

He's going to build in China for the cheap labor. The rest of the tax crap is just icing on that parasites cake.

And this after he's been in the USA for years milking the s*** out of our government in loans, tax credits, and contracts.

 

[Theinsanegamer]

Well, he's convinced me now that he is truly stupid. Any businessman knows that building any kind of factory in china leads to your product being made and sold at 20% of what you can make it for; gets flooded into the American market and will drive you out of business. Of course, maybe that is his long term plan????

Yeah, because chinese cars are all the RAGE in america! oh wait a minute. no, they are not. Doesnt matter who makes a car, it needs to pass US inspection before it can be sold here, so some cheap chinese knockoff will NOT be making it here.

Also, many of musk's important patents have already been opened up for other companies to use, there is nothing stopping a Chinese company from doing it without his involvement.

Isn't anybody as sick of hearing about this a**hole as I am?

He's going to build in China for the cheap labor. The rest of the tax crap is just icing on that parasites cake.

And this after he's been in the USA for years milking the s*** out of our government in loans, tax credits, and contracts.

Yes, how dare someone try to challenge the big incumbant auto makers and force them to actually innovate again!?!

Sorry, but no, most people are not tired of hearing a startup US company, that pushed innovation and got the big auto makers to finally wake up and start doing something again, being successful and entering new markets. Some of us like having competition, and having technological advances.

And did you forget this is the same guy building the gigafactory in the US, while other automakers continue to ship jobs to mexico? If he was only going to china for cheap labor, why build the gigafactory in nevada? Or do you think that is just milking as well, since he got tax breaks/incentives to build it, like every other US company does? Only the dumbest companies would ignore free money.

 

[captaincranky]

Yeah, because chinese cars are all the RAGE in america! oh wait a minute. no, they are not. Doesnt matter who makes a car, it needs to pass US inspection before it can be sold here, so some cheap chinese knockoff will NOT be making it here.

Also, many of musk's important patents have already been opened up for other companies to use, there is nothing stopping a Chinese company from doing it without his involvement.


Yes, how dare someone try to challenge the big incumbant auto makers and force them to actually innovate again!?!

Sorry, but no, most people are not tired of hearing a startup US company, that pushed innovation and got the big auto makers to finally wake up and start doing something again, being successful and entering new markets. Some of us like having competition, and having technological advances.

And did you forget this is the same guy building the gigafactory in the US, while other automakers continue to ship jobs to mexico? Or do you think that is just milking as well, since he didnt build a massive factory all on his own like, well, Every company in the US. Only the dumbest companies would ignore free money. If he was only going there for cheap labor, why build the gigafactory in nevada?

This "gigafactory" crap, is that some kind of "new speak" supposedly clever term for "big".?
AFAIK, Musk isn't building squat, he's talked Panasonic into it, and they're doing the funding.

As far as building US cars someplace other than the US, they've been building them in Canada for close to fifty years.

And Mexico, you say? Well they been picking your produce for pennies and hour for a hundred years or more. It's about time we threw them a bone. The Chinese work a lot lot cheaper than the Mexicans, and there's a whole lot more of them.

But your post is the type of nonsense I would expect from a Musk fanbois.

The Chinese worker will get maybe four bucks an hour, to build the same car which a UAW worker would get paid at least twenty an hour.

Why don't you go do the math on that, before you start spouting all this, "Musk is God", bulls***. Detroit is practically a ghost town now.

As far as the rest of Musk's incessant ranting goes, no, it won't help overpopulation one bit if Musk does actually manage to build a colony on Mars. To tell the truth, neither would a Tesla in every other driveway.

 

[BrianMontanye]

Yeah, because chinese cars are all the RAGE in america! oh wait a minute. no, they are not. Doesnt matter who makes a car, it needs to pass US inspection before it can be sold here, so some cheap chinese knockoff will NOT be making it here.

Also, many of musk's important patents have already been opened up for other companies to use, there is nothing stopping a Chinese company from doing it without his involvement.


Yes, how dare someone try to challenge the big incumbant auto makers and force them to actually innovate again!?!

Sorry, but no, most people are not tired of hearing a startup US company, that pushed innovation and got the big auto makers to finally wake up and start doing something again, being successful and entering new markets. Some of us like having competition, and having technological advances.

And did you forget this is the same guy building the gigafactory in the US, while other automakers continue to ship jobs to mexico? Or do you think that is just milking as well, since he didnt build a massive factory all on his own like, well, Every company in the US. Only the dumbest companies would ignore free money. If he was only going there for cheap labor, why build the gigafactory in nevada?

This "gigafactory" crap, is that some kind of "new speak" supposedly clever term for "big".?
AFAIK, Musk isn't building squat, he's talked Panasonic into it, and they're doing the funding.

As far as building US cars someplace other than the US, they've been building them in Canada for close to fifty years.

And Mexico, you say? Well they been picking your produce for pennies and hour for a hundred years or more. It's about time we threw them a bone. The Chinese work a lot lot cheaper than the Mexicans, and there's a whole lot more of them.

But your post is the type of nonsense I would expect from a Musk fanbois.

The Chinese worker will get maybe four bucks an hour, to build the same car which a UAW worker would get paid at least twenty an hour.

Why don't you go do the math on that, before you start spouting all this, "Musk is God", bulls***. Detroit is practically a ghost town now.

As far as the rest of Musk's incessant ranting goes, no, it won't help overpopulation one bit if Musk does actually manage to build a colony on Mars. To tell the truth, neither would a Tesla in every other driveway.

I am not sure what end of the straw you are drinking your Kool-aid from but I'd like to know where you are getting it from and is it legal to use?

 

[captaincranky]

I am not sure what end of the straw you are drinking your Kool-aid from but I'd like to know where you are getting it from and is it legal to use?

This factory in China is typical Musk ADHD behaviour. He announces a new car, manages to get a crap load of orders for it, and all of a sudden has to build a new factory in China to produce it. As far as the rest of my post goes, why don't you tell me what is incorrect about it, and skip your s*** about "Kool-Aid" as it simply doesn't say anything, mean anything, or point out whatever you think I am in error about.

You two can share a straw if you like.

 

[IAMTHESTIG]

Don't care... Pure electric cars will never take off anyway.

And yes; before anyone asks, I'm in a bad mood today.

 

[Lionvibez]

Don't care... Pure electric cars will never take off anyway.

And yes; before anyone asks, I'm in a bad mood today.

If you go far enough back they also said we would never cross the altantic and the earth is flat.

Time will show you comments like this are often short sighted and lack vision!

 

[captaincranky]

@midian 182 Do you really have keep to running that same inane picture of Musk, over and over?

It kind of reminds me of the, "man in the moon", having his a** tickled with a feather.

 

[captaincranky]

If you go far enough back they also said we would never cross the altantic and the earth is flat.

Time will show you comments like this are often short sited and lack vision!

Right. Time has also shown us that handing money to Bernie Madoff to invest for you was a really, really, bad idea.

What's actually short sighted and lacks vision, is thinking Musk is going to cure any of the world's real problems with his reusable rocket boosters and Tesla cars.

 

[IAMTHESTIG]

If you go far enough back they also said we would never cross the altantic and the earth is flat.

Time will show you comments like this are often short sited and lack vision!

Short sighted... not sited. Gosh...

 

[captaincranky]

Short sighted... not sited. Gosh...

Is that anything like, "he's blind in one eye, and can't see out of the other"?

Although, I think you meant "sighted". "Cited" would be as repeating something from a law book. But "sited", I'm not sure. It might have something to do where a building gets put.

 

[johnsonlam.hk]

I believe Mr. Elon Musk is a super busy person, but someone in the management please tell him to stop thinking invest in China. Facts show that China is not a suitable place, example: Apple, Honda and New Balance is losing lawsuit of legitimacy in China, also the famous R&D (Repeat and Duplicate) ability of the Chinese, all your technology is not simply stolen, but will appeared in a low grade replicate that harm your brand and the life of people.

Move to Thailand, Vietnam or even consider Taiwan (may be higher cost but technically a lot better).

 

[captaincranky]

I believe Mr. Elon Musk is a super busy person, but someone in the management please tell him to stop thinking invest in China...[ ]....

I sincerely doubt that Musk is the type of person who can be told anything, let alone where to try and get someone else to build a factory for him....

 

[shooi dan tom]

There are a lot of China bashers. Maybe Tesla should be building its cars in the Middle East, India, Africa, South America.........But look, China haters, millions of people die trying to go be with white people so they can buy and use stuff that is made in China.

 

[shooi dan tom]

So every replacement part will be genuine, even if it's "made in China"( or PRC ?).

Yes. Or you prefer it is made by Chinese, Indians, Mexicans, Africans.......in Fremont, Ca????

 

[Aguibra]

The idea of China factory is going to be regretted. Chinese copied Tesla will drive you out of China, you will loose both capital and investment. Be wise Elon my man!

 

[696969]

I think it would be fair that the US put a 30% import tax on all these made in China Tesla that he tries to bring back to the US.

 

[Vision101]

Very disappointed news from Tesla. I was going to buy an innovated car from Tesla that is designed and made in USA. It's kind of like the iPhone now; designed in California, and made in China. Perhaps, he is thinking that if the car is made in China, he will be able to lower the price down to $20K. I hope the Chinese will come out with a knock off within months of the new version of Tesla "made in china." And, I hope the next administration will put 50% tariff for any American car made in china. Where is the prestige now? I will not be able to look at Tesla the same way after 2018.

 

[Vision101]

So many of my friends and co-workers are going to be so mad when they find out the Tesla that they are going to get will be "made in china." I wonder if that $1000 deposit is refundable.

 

[Raoul Duke]

I have no problem with Chinese people/ancestry or Chinese culture.
Do have big problem with Chinese government. Communist dictatorship. Mao killed more people than Stalin, right there that is some achievement. Even now USA recognizes government sanctioned organ harvesting from dissidents