(Original title: Tesla did not respond to domestic factory rumors if local production or price cuts)
Newspaper trainee reporter Chen Wei
The news that Tesla was going to build a plant in China was reported to the newspaper as early as 2015, but the company had made several rumors. On June 20, Tesla’s message to build a factory in Shanghai once again brushed up a circle of friends.
According to sources quoted by Bloomberg, according to sources, Tesla will reach an agreement with relevant parties in Shanghai this week to build a factory in Lingang Industrial Area in Shanghai. Specific details have not yet been agreed. At the same time, according to domestic regulations, Tesla needs to establish a joint venture with at least one local partner. It is not yet clear which company it is.
In the early morning of the 20th, Tesla had a strong concept and multi-share daily limit, driving the lithium battery sector to follow suit. As of press time, Tesla did not respond to the rumor. On the afternoon of the 20th, the “Securities Daily†reporter called the Shanghai Lingang District Administrative Committee office and the phone was connected but nobody answered.
Frequent construction rumor
The reporter noted that this is not the first time that Tesla has been reported to build a factory in China, but it has been officially denied by him every time.
In June last year, some media reported that Tesla and Shanghai Jinqiao Group had signed a non-binding memorandum. Both parties will invest 30 billion yuan each to establish a production plant in Shanghai. But then Shanghai Jinqiao issued a clarification announcement stating that the company had not signed a memorandum or other form of documents with anyone to establish a joint venture with Tesla.
In February this year, it was reported that Tesla would establish a joint venture with China to build a production base with an annual output of 500,000 vehicles in Lingang, Shanghai. But Tesla's rumors back then were not true. Shanghai Lingang also issued a clarification announcement saying: “Lingang Group has so far failed to sign a cooperation agreement with Tesla for its construction of a plant in China and has not participated in the relevant investment.â€
In April, it was reported that Tesla planned to build a factory in Guangdong in a wholly-owned manner. The site has been selected and is waiting for approval from the government. However, the news was also denied by Tesla officials.
On the other hand, the news of the construction of the factory, which was re-emerged on June 20, has not yet been officially answered by Tesla. The reporter called the Shanghai Lingang District Administrative Committee on the afternoon of the 20th and then transferred to the office. The telephone was connected but no one answered.
The rumors of being planted constantly have been heard, and they have been continuously denying it. Many people have expressed that they are watching in the fog, but there are reasons behind the rumors.
As early as 2015, when Tesla CEO Musk came to China, he hoped to establish a domestic production and design base in China within three years. In January of this year, he mentioned that he is looking for a Chinese partner and has conducted a series of high-level meetings with related departments, but there has been no exact information on the location.
In April, he once again stated that “there will be a clear plan before the end of the year, including production plans involving the Chinese marketâ€. It was mentioned that the position of the newly added Giga Super Battery Factory will be formally announced during the year.
There are many benefits to building a plant in China
Car analyst Yang Shuai said in an interview that Tesla is likely to build a factory in China. Judging from the news of plant construction that has been frequently reported from all over the country, although it has been officially denied, it still reflects that Tesla is accelerating its localization. Whether the factory will be built or not, the answer should be affirmative, but it is still not clear when and where the factory will be built.
According to industry insiders who are unwilling to be named, Tesla has been operating secretly in production in China and has been in contact with different partners to measure and compare the conditions set by the other party. He said that Tesla's establishment of a factory in China has reached the stage of site selection.
For Tesla, the benefits of building a factory in China are obvious. Cui Dongshu, secretary-general of the CLUCC National Committee, said in an interview that with the localization of Tesla, its market performance will be further improved.
On the one hand, with the support of the national policy, the future development of new energy vehicles in China is possible. Tesla, which produces pure electric vehicles, undoubtedly has a huge space in the Chinese market.
According to the State Council's approval and announcement of the “Thirteenth Five-Year National Strategic Emerging Industries Development Planâ€, new energy vehicles have been listed as a strategic emerging industry in China. It is clear that by 2020, more than 2 million units will be produced and sold in the year, and the cumulative production and sales will exceed 500. 10,000 cars.
On the other hand, according to Tesla’s financial data, the company’s revenue in China was US$1 billion in 2016, accounting for 14% of the company’s annual revenue of US$7 billion; according to revenue, China is already Tesla. The second largest single market.
In July of this year, Tesla plans to start production of its Model 3 with lower prices in order to expand the market. However, the reporter noted that at present, due to the issue of import tariffs, the prices of domestic Model S electric cars and Model X electric SUVs sold in the country are much higher than those in the US market. In this case, its cheap models are The price increase after paying import taxes may also be difficult to attract to the original target group.
Insiders pointed out that the assembly of Tesla in China will enable the company to avoid paying a 25% tariff, which will help it lower its selling price in China and attract more consumers. He said that Tesla has the advantages of branding, workmanship, and endurance. After localized production, its high-price barrier of tens of millions is broken and the market will further expand.
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