Why Tesla And Elon Musk Face Gordon Ramsay’s WORST Chicken 10 months ago   06:55

Tesla recently broke ground on Gigafactory 3 in Shanghai and has grand ambitions in China but it faces serious competition there from a mix of Chinese and foreign automakers already manufacturing electric vehicles there, for example: BYD, BAIC Group, SAIC and Nio; and BMW, Mercedes, Audi and Toyota.

Tesla needs China, the world's largest auto market, in order to succeed. Customer demand and government support for so-called "new energy vehicles" there is skyrocketing.

CEO Elon Musk recently warned that without manufacturing in China, Tesla won't be able to produce 10,000 Model 3 electric sedans per week (as the company has aimed to do for years) and won't be able to offer the eagerly awaited base model at a price of $35,000.

"Bottom line is we need the Shanghai factory to achieve that," Musk said on the company's 2018 fourth-quarter earnings call.

However, Tesla — like other U.S. automakers — faces considerable competition in China.

According to Michael Dunne, founder of automotive advisory firm ZoZoGo, "China produced half of global electric vehicles last year. The U.S. produced about twenty percent. China is clearly way out in front in terms of size, production and scale."

Electric vehicle makers that are already up and running there include:

- NIO, which went public in September 2018
- Warren Buffet-backed BYD
- A partner of Volkswagen and GM called SAIC Motor
- Geely Automotive Group which is the parent company of Volvo
- BAIC Group, and its subsidiary, Beijing Electric Vehicle Co.

A bevy of electric vehicle startups are on the rise in China too, including Byton and WM Motor Tech.

Chinese automakers have benefited from some $60 billion worth of subsidies and incentives since 2012, designed to make new energy vehicles affordable for Chinese drivers, according to ZoZoGo.

But as Musk recently bemoaned, Tesla hasn't been able to cash in on those subsidies and tax incentives. As a result, a Model S that would cost around $80,000 in the U.S. today would cost around $140,000 in China after taxes, for example.

Tesla's vehicles will probably remain very costly in China until the company begins manufacturing at its planned factory there in Shanghai.

Even though Tesla broke ground on its Gigafactory 3 in Shanghai, the company has yet to publish an 8-K filing with the SEC showing that it has secured funding, or secured a material partnership, to build it out.
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Tesla Needs China, But Faces Stiff Competition

Comments 554 Comments

Does Tesla have a chance in China with so much local competition? Let us know what you think below:
Golden 47
So Trump is pushing USA companies to China
Lee Ventajar
invest in the philippines
Raw2929 Will
America Media seam like them want Tesla to fail sad
Raw2929 Will
Tesla will be find
so shortly, USA is in much late

ford and chevy should have a decent line already..
and i think the cause usa is late to set up production the known hate against chinese products..

usa should woke when mercedes and bmw started to make cars in china
Sawyer Zhu
because CNBC said it at Youtube
Love watching this video in December 2019 ;)
Aye Carumba
Chinese wins
They know how to give us corporations rope to hang themselves.
There are things that people should know about the Chinese government.
1. The Chinese government doesn't keep it's word the Chinese president broke the term rules so that he can stay in power.
2. All technologies are monitor by the government.
3. This regime is patriotical China comes first.
4. China is not democracy.
5. Chinese market is saturated with your own tech that they copy.
Lars Nyström
The Chinese wants Tesla. And wants them to do well. It gives their own EV builders something to strive for. Nothing like competition to make better progress.

They are not like the US, who are so afraid of competition they try to avoid it "for security reasons". No wonder their industry crumbles!
Eric Rooney
China is moving up the value chain.
Alfonso Cordoba
Love my Tesla!!!
John K Lindgren
5:07 *Hey, Mademoiselle in tight Blue Jeans did you just say « PORSCHH? Respect PLEASE!!! It is: PORSCHE, PORSCHE!!! Okay. Bangkok Johnnie CarSanook Media here from TIME Thailand International Motor EXPO 2019*
Eddie Eda
cnbc is making excuses for Tesla to outsource American jobs to china.
Huang Chengjun
Price of Tesla Model S in China is 100k USD not 140k. such a lier.
jg mar
Why the world needs China?
Faith returns
I do find it hilarious that America's enemy, the media and CNBC, I think that China is going to allow Elon Musk and an American company to come in and take over their share of electric vehicles! LOL clearly you do not understand China or the Communist Party! Not only will Elon Musk not be successful in China but China's Market is going to collapse on itself because it is a house of cards being built by the Liars in the Communist Party! The truth is coming out and the facade that has been built around the Chinese economy is slowly fading and the truth is being seen
Adeesha Thodthillaya
China has a powerful economy than America
ferdinand he
People make 4000 in usa verses people who make 4000 in china every month. In usa buy a gle63s is under 150000, in china 2 millions
john savage
Tesla will fail in China!!!! They aren't going to succeed in the long run in the US.
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Gordon Ramsay’s WORST Chicken Why Tesla And Elon Musk Face 10 months ago   11:51

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