• 4 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 7 minutes Countries with the most oil and where they're selling it
  • 10 minutes Stack gas analyzers
  • 13 minutes What Would Happen If the World Ran Out of Crude Oil?
  • 11 hours US Military Spends at least $81 Billion Protecting OPEC Persian Gulf Oil Shipping Lanes (16% DoD Budget)
  • 3 hours "Undeniable" Shale Slowdown?
  • 14 mins Climate Change Protests
  • 49 mins China To Promote Using Wind Energy To Power Heating
  • 36 mins How many drilling sites are left in the Permian?
  • 21 hours Oil at $40
  • 12 hours U.S. Refiners Planning Major Plant Overhauls In Second Quarter
  • 12 hours Gas Flaring
  • 2 hours Mueller Report Brings Into Focus Trump's Attempts to Interfere in the Special Counsel Investigation
  • 16 hours Japan’s Deflation Mindset Could Be Contagious
  • 1 day Ecoside
  • 21 hours Negative Gas Prices in the Permian
  • 2 days Trudeau Faces a New Foe as Conservatives Retake Power in Alberta

Breaking News:

Guaido Takes Strides To Topple Maduro

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