Mask revealed Tesla plans to build super plant in China

Tesla USA ASUS iPhone

xinlangcaijing· 2017-08-05 11:56:17

(original title: musk said Tesla in China building super factory plan)

PingWest play goods reported on August 5th, Wednesday, Tesla CEO Elon Musk in the company's second quarter earnings conference call revealed that the establishment of super plant in Chinese (Gigafactory) plan.

musk said in a conference call: "we want to maintain most of the production in the United States, but it is obvious that it is meaningful to build super factories in China and Europe and serve the local market.". Production in California and then shipping across more than half of the globe is impractical, especially if the product wants the consumer to be as affordable as possible. The construction cost of

Tesla's first super factory was estimated at $5 billion. Although the plant is being built all over the United States, Tesla's plan to build a plant in China is a new step. The company had previously announced plans to build a super factory in Europe in November.

Tesla's products have high demand in the Chinese market. Tesla CEO Ren Yuxiang said that the Asia Pacific region, China Model 3 bookings than any other country outside the United states. By setting up factories in China, Tesla is able to avoid import tariffs on Chinese manufacturers, thereby reducing car prices and further attracting potential customers.

but it's not easy for Tesla to set up factories in China, because market access requires foreign companies to have manufacturing partners locally. That means Tesla has to share its technology with Chinese companies. However, the market also has a precedent, Apple has done this, apple is still the largest manufacturer of mobile phone Foxconn, ASUS and Wistron Chinese enterprises. (LU)

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