ã€Global Science and Technology Report】 Tesla CEO Elon Musk hopes that Tesla's electric vehicles will enter the global market and has established factories in the United States and Europe. The next step will be to enter the Chinese market. According to the US science and technology website PCmag on June 23, Tesla plans to build a factory in Shanghai to produce electric vehicles. The current negotiations are in progress.
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Tesla's plan to build a factory in China instead of directly allowing the Chinese market to import vehicles is taking into account auto import tariffs. In China, imported vehicles are generally subject to a 25% tariff. Tesla’s move aims to evade tariffs.
The policy stipulates that Chinese and foreign companies in Sino-foreign joint ventures shall not exceed 50% of the shares. This means that once Tesla has set up a factory in Shanghai, it will only have half of its equity and earnings, and it will have joint control over the production process and its partners.
As for Tesla's partners in China, it is speculated that Tencent may be the largest. At present, Tencent already holds 5% of Tesla's shares. Tencent's positioning is an Internet company, and this happens to be what Tesla hopes, so that Tesla can better control its own intellectual property rights.
It is not clear as to whether Tesla's negotiations on the establishment of a factory in China will be successful or when the manufacturer will be built. Tesla said that it expects to finalize these problems by the end of this year.
Recently, American cars have relocated their production plants to China. June 22, Ford Motor Company announced that Ford Focus will be converted to China from the United States and will be put into production in 2019. Ford Motor Company originally planned to relocate the Fox production plant from the United States to Mexico and decided to relocate to China. It now appears that Tesla will also join the "Eastward Migration" plan. (Internship Editor: Zhang Yifei reviewer: Li Zongze)
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