• 2 days Court rules DOE to implement Obama efficiency rules
  • 20 hours DOA to invest $6.5M in coal industry
  • 21 hours US to hold largest oil and gas lease sale in its history
  • 2 days Tillerson Seeks A Deal With Erdogan On Syria
  • 2 days White House considering steel and aluminum tariffs
  • 3 days Iraq Seeks $100 Bln to Rebuild Economy
  • 3 days Allegedly the Search For Aliens is Struggling Thanks to Cryptocurrency Mania
  • 19 hours New Rules to Phase Out Coal and Reduce Natural Gas in Canada
  • 2 days Amazon reaches $1.2 million settlement with EPA over illegal pesticide sales
  • 20 hours White House Not Even Close to Regulating Bitcoin Yet
  • 2 days U.S. Bancorp hit with $613M in penalties
  • 20 hours Experts said US losing ground to China on AI
  • 3 days Australia's solar power boom to double in a year
  • 3 days US intelligence warn against Chinese phones
  • 3 days Electric Buses to Reach Half of World Fleet by 2025
  • 3 days How Good Is Putin's Word?
Oil Rig Count Rises As Prices Recover

Oil Rig Count Rises As Prices Recover

The oil rig count increased…

Tesla May Miss Out On Chinese EV Push On Discord Over Local Factory

Musk

Tesla Inc and China disagree over the future ownership of a Tesla factory in Shanghai, Bloomberg reported on Wednesday, citing people with direct knowledge of the talks, which means that without local Chinese production, the U.S. electric vehicle maker continues to face high import taxes that make its cars much more expensive than those of local rivals on the world’s largest EV market.

China insists 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. Tesla, on the other hand, wants to have full ownership of the future factory, Bloomberg’s sources said.

In November, Tesla’s chief executive Elon Musk said that the Chinese factory could start production in around three years.

“Don’t set your watch by this,” Musk said at a conference call, adding that “there’s a rough target of starting production in the next three years, and it would be serving the China market and some of the surrounding region.”

The current disagreement with Chinese authorities over the ownership of the factory doesn’t mean that a deal can’t be reached in the future, but until then, Tesla’s vehicles shipped from the U.S. will come at a price that includes a 25-percent import tax, which makes them unaffordable for most consumers, and more expensive than the EVs of local rivals.

Related: U.S. To Become Net Oil And Gas Exporter In 5 Years

“Tesla has no strategic path,” Yale Zhang, managing director of Shanghai-based consulting company Automotive Foresight, told Bloomberg. “It has the halo of Elon Musk, and its products are slightly ahead of the competitors, but the others—especially the Chinese EV startups—are catching up rapidly,” Zhang added.

According to data crunched by Bloomberg, Tesla’s sales in China last year--14,883 vehicles—accounted for just 3 percent of the battery-powered car sales of 449,431 units. While Tesla’s EVs account for the majority of battery-powered vehicle sales in the U.S., Tesla ranks tenth in China, Bloomberg data shows.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • the masked avenger on February 14 2018 said:
    The Chinese are thieves. Of course they want joint ownership to steal intellectual property.

Leave a comment

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