• 4 minutes Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 12 minutes Western Canada Select price continues to sink
  • 18 minutes Starvation, horror in Venezuela
  • 2 hours WTI @ 67.50, charts show $62.50 next
  • 52 mins China still to keep Iran oil flowing amid U.S. sanctions
  • 9 mins Is NAFTA dead? Or near breakthrough?
  • 3 hours China goes against US natural gas
  • 2 hours How To Explain 'Truth Isn't Truth' Comment of Rudy Giuliani?
  • 3 hours Saudi PIF In Talks To Invest In Tesla Rival Lucid
  • 5 hours Japan carmakers admits using falsified emissions data
  • 2 hours Corporations Are Buying More Renewables Than Ever
  • 2 days Renewable Energy Could "Effectively Be Free" by 2030
  • 2 hours Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 19 hours Hey Oil Bulls - How Long Till Increasing Oil Prices and Strengthening Dollar Start Killing Demand in Developing Countries?
  • 2 days Why hydrogen economics does not work
  • 1 hour Saudi Fund Wants to Take Tesla Private?
Saudi Arabia And Iran Reignite The Oil Price War

Saudi Arabia And Iran Reignite The Oil Price War

As U.S. sanctions on Tehran…

Oil Prices Fall On Significant Crude Build

Oil Prices Fall On Significant Crude Build

Oil prices fell on Wednesday…

Tesla May Be The Biggest Winner Of China’s New Car-Market Rules

Tesla model Y

China is removing a limit on foreign ownership of carmaking joint ventures that has been in place since 1994, and that comes as welcome news for Tesla, which has been trying to set up a local manufacturing unit in China while facing a lot of negative publicity at home of late. And let’s face it, Tesla could sure use the win.

China—which has been limiting foreign carmakers to owning no more than 50 percent of any local joint venture—will lift the foreign ownership cap for electric vehicle (EV) and plug-in hybrid car manufacturers as early as this year, according to the Chinese state planner. Makers of commercial vehicles will see the restrictions removed in 2020, and the wider auto market will have the limits scrapped by 2022.

Earlier this year, reports suggested that Tesla and China disagree over the future ownership of a Tesla factory in Shanghai. China has insisted that all vehicle-manufacturing plants should be joint ventures with local partners, and currently all foreign carmakers must have a Chinese partner to manufacture vehicles locally. But Tesla wanted to have full ownership of the future factory.

The removal of the Chinese ownership limits can be beneficial to the U.S. EV maker and other carmakers focused on new-energy vehicles, at least in the short term, analysts told Reuters.

Related: JP Morgan: Oil Prices Won't Go Higher Than $70

China is Tesla’s second-largest market after the United States, but the trade spat between China and the U.S. was threatening to make Tesla’s vehicles in China even more expensive than they are now. For carmakers without local Chinese manufacturing—such as Tesla—more tariffs would render their cars even more expensive niche products.

Elon Musk has recently called on U.S. President Donald Trump to level the playing field for car tariffs between the U.S. and China—and he did this a couple of weeks before the current trade row.

Last week, Chinese President Xi Jinping vowed to open the Chinese economy and reduce some import tariffs, including on cars, in a speech seen as an attempt at averting an all-out trade war.

Later the same day, President Trump tweeted that he was “Very thankful for President Xi of China’s kind words on tariffs and automobile barriers...also, his enlightenment on intellectual property and technology transfers. We will make great progress together!”

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • car-database-api on April 18 2018 said:
    well, at least there will be one positive event for Tesla this year.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News