Wanted: Local partner for Tesla Motors in China


Tesla Motors (TSLA) CEO Elon Musk says the company will produce cars in China within three or four years.

Musk also disclosed the EV automaker is building charging stations in the region at an accelerated pace.

What to watch: Tesla will need to find a local partner and some support from the government if it wants to build cars in China. That delicate process could take up to a year.

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Comments (27)
  • Frank Greenhalgh
    , contributor
    Comments (4557) | Send Message
     
    More promises for the future. We have The Gigafactory, Model X, Model E , joint ventures with China, charging stations in Bejing and Shanghi. A new designer from Aston Martin to design the ME. The news is full of Tesla promises, let's see what will happen if they can come to fruition. Still no state for the Gigafactory
    22 Apr 2014, 07:06 AM Reply Like
  • From an European point of view
    , contributor
    Comments (46) | Send Message
     
    ... the battery-swap stations that have been delayed .
    22 Apr 2014, 07:10 AM Reply Like
  • David at Imperial Beach
    , contributor
    Comments (4381) | Send Message
     
    You're forgetting the right hand drive version for UK, Australia, Japan, etc.
    22 Apr 2014, 12:03 PM Reply Like
  • I need a bailout
    , contributor
    Comments (1758) | Send Message
     
    @fgrindle

     

    You forgot an item

     

    Tesla new factory in Lathorp CA ... "to do modifications".

     

    http://bit.ly/1jw0rJ7

     

    Big recall coming?
    22 Apr 2014, 01:33 PM Reply Like
  • I need a bailout
    , contributor
    Comments (1758) | Send Message
     
    @European

     

    delayed since 2013 because they cost $500,000 ea

     

    Also the promise of "free solar power forever" never happened either.

     

    THe superchargers get their power from the grid. Tesla could not afford SolarCity prices on the solar panels and infrastructure to support it.

     

    From Tesla press release Sep 24, 2012
    Elon Musk, Tesla Motors co-founder and CEO. "We are giving Model S the ability to drive almost anywhere for free on pure sunlight."

     

    Anyone smell a class action lawsuit coming? Model S owners have never seen a supercharger with solar panels.
    22 Apr 2014, 01:40 PM Reply Like
  • portatopia
    , contributor
    Comments (1538) | Send Message
     
    "We are giving Model S the ability to drive almost anywhere for free on pure sunlight."

     

    By the above statement alone, it should throw some reg flags if you are investing in TELSA.
    22 Apr 2014, 02:19 PM Reply Like
  • Ford Prefect 1969
    , contributor
    Comments (2267) | Send Message
     
    "By the above statement alone, it should throw some reg flags if you are investing in TELSA."

     

    Doubt it. TSLA is affiliated with a Solar installer.
    22 Apr 2014, 03:25 PM Reply Like
  • Christopher Cowan
    , contributor
    Comments (142) | Send Message
     
    It appears that Tesla can actually make a decent profit off of the Super Chargers because they currently charge $2000 per car for access to them
    22 Apr 2014, 11:41 PM Reply Like
  • surferbroadband
    , contributor
    Comments (5251) | Send Message
     
    @I need a bailout, the article you are referencing actually is hinting at expanding operations. Since the article was short here is the entire article.

     

    "Tesla Motors (Nasdaq: TSLA) is planning to expand a manufacturing facility in Lathrop, California.

     

    According to InsideEVs, citing the Manteca Bulletin on the information, Tesla has taken permits to expand a vacant Daimler-Chrysler 431,000-square-foot facility in California, potentially adding up to 125,000-square-feet of additional space.

     

    City Manager Steve Salvatore said the permits were to allow for extra "manufacturing modifications." Work on overhauling the facility has already begun.

     

    Shares of Tesla are up 5.5 percent."

     

    So Mr. I need a bailout, how does taking a quote from a city manager that is giving a permit to a car manufacturer, jump to there being a "Big Recall"?

     

    Since the stock price was up 14 point today, it is obvious this was just a snarky comment.
    23 Apr 2014, 02:19 AM Reply Like
  • Benchillin
    , contributor
    Comments (7) | Send Message
     
    Maybe KNDI
    22 Apr 2014, 07:06 AM Reply Like
  • 11146471
    , contributor
    Comments (1379) | Send Message
     
    Most probably Mr. Buffet's BYD Company (Ticker: 2594 in HKG)
    23 Apr 2014, 01:05 AM Reply Like
  • Tales From The Future
    , contributor
    Comments (7624) | Send Message
     
    People finally realize that the import taxes are simply too high for any car model other than the S or X selling to a small niche.

     

    TSLA will have to open a factory in China (maybe also a battery factory long-term to be cost-competitive) if it ever wants to increase marketshare, this expansion won't come cheap or fast.

     

    TSLA's EV competitors already have these car JVs/factories in China today: Denza, Venucia, Zinoro, VW-FAW....etc.

     

    BYD (also a partner in Denza) is a strong local EV competitor in the mass-market already.
    22 Apr 2014, 07:23 AM Reply Like
  • Ford Prefect 1969
    , contributor
    Comments (2267) | Send Message
     
    @tftf

     

    " this expansion won't come cheap or fast."

     

    Um - actually it will attract swathes of capital from the Chinese government. From Tesla's perspective will be externally funded and fast.
    22 Apr 2014, 09:03 AM Reply Like
  • David at Imperial Beach
    , contributor
    Comments (4381) | Send Message
     
    No talk yet of a battery gigafactory for China. The China factory would be a final assembly plant like they have in the Netherlands.
    22 Apr 2014, 12:06 PM Reply Like
  • Tales From The Future
    , contributor
    Comments (7624) | Send Message
     
    "actually it will attract swathes of capital from the Chinese government"

     

    The JVs I listed above already have these relationsships in place for EVs made in China, some of them had them in place for years. We just didn't hear about it in the West because these (EV) brands are for China exclusively.

     

    All of them are already making EVs in China for launch in 2014, TSLA is at beast 3-4 years away.

     

    Where is the TSLA advantage?

     

    Generally, China has many local (car and EV) players to protect, that's why they force these JVs on foreign car companies.
    22 Apr 2014, 02:20 PM Reply Like
  • Tales From The Future
    , contributor
    Comments (7624) | Send Message
     
    @David, if so they will not get the full rebates/incentives as other brands who have "real" factories in China (Zinoro, Denza etc.)
    22 Apr 2014, 02:22 PM Reply Like
  • Ford Prefect 1969
    , contributor
    Comments (2267) | Send Message
     
    "Where is the TSLA advantage?"

     

    Cars that customers are interested in buying. So far rather elusive goal for the other EV players in both the East and West. Most if not all of the rest are stuck on the idea of trying to use LiFe cells or some half way house like LiMn or NCM.

     

    China would love to become a centre of Tesla manufacturing for its domestic market, that is what they do out there.
    22 Apr 2014, 03:31 PM Reply Like
  • Tales From The Future
    , contributor
    Comments (7624) | Send Message
     
    "China would love to become a centre of Tesla manufacturing for its domestic market, that is what they do out there. "

     

    20+ million cars are sold in China each year, TSLA sells a few thousand cars in China - as I have written again and again, TSLA will neither solve China's massive environmental and traffic problems nor add to employment in a country with 1+ billion people.

     

    China wants its local EV (mass-market) makers to thrive over time, they have very little interest in propping up a foreign niche car maker.

     

    The title is wrong imho, a local partner is not WANTED, a local partner in China is REQUIRED/FORCED UPON by the laws in China because of the import tax structure and China wanting to acquire foreign car IP as well.

     

    PS: China's massive transport problems can only be solved by better public mass transport anyway, more cars will only clog up the big cities more, EVs don't help there.
    22 Apr 2014, 04:03 PM Reply Like
  • Ford Prefect 1969
    , contributor
    Comments (2267) | Send Message
     
    "as I have written again and again, TSLA will neither solve China's massive environmental and traffic problems nor add to employment in a country with 1+ billion people"

     

    Yes it will. At least its much more likely to do so than anything else.

     

    So please be our guest and write it some more times or as many times as you wish. Most unlikely to make a scrap of difference to the course of history.

     

    Tesla has a formula for changing driving habits from ICE to EV - making nice EVs that people want to buy. Pretty neat too. It also has an integrated strategy with grid storage and solar - now that really is world changing stuff. China is a relatively newly developed country with enough centralised authority vested in its government (and enough trust in that government given by its people) to make huge radical society altering decisions.

     

    It has decided to tackle pollution. Musk / Tesla has a working formula, China has the cash and the will to use it - and no giant vested incentives to mess about any longer than strictly necessary with fossil fuels.

     

    I would not be much surprised if Chinese adoption energy and transportation according to Musk did not sweep China faster than anywhere else on Earth.
    22 Apr 2014, 07:52 PM Reply Like
  • I need a bailout
    , contributor
    Comments (1758) | Send Message
     
    China needs to invest more heavily in mass transit and thereby reduce traffic with less pollution.

     

    No more EVs needed.
    23 Apr 2014, 12:28 AM Reply Like
  • 123man
    , contributor
    Comments (1649) | Send Message
     
    Perhaps BYD - already exists, same EV market, opposite end of the spectrum - and Warren Buffet is already invested - what a momentum play that would be -
    22 Apr 2014, 10:41 AM Reply Like
  • Tales From The Future
    , contributor
    Comments (7624) | Send Message
     
    BYD is not "only" opposite ends of the TSLA spectrum, their new sportscar EV wil cost around $80k+ when it launches in 2015:

     

    "The BYD pure electric super car will be launched on the China car market in 2015, called BYD E9. The super car will be a convertible two-seater comparable in concept to the Tesla Roadster. Acceleration from 0 to 100 km/h will take 3.9 seconds. Price will start around 500.000 yuan (82.000 USD) and that will make the E9 the most expensive China-made sportmachine ever made."

     

    BYD of course also do EV buses etc., in short they make everything EV-related in China and currently have the best-selling EV/PHEV there.

     

    Even so, EVs are still a tiny niche in China's total car market of 20+ million cars/year.
    22 Apr 2014, 02:16 PM Reply Like
  • 123man
    , contributor
    Comments (1649) | Send Message
     
    Try to pull apart two pieces of wood nailed together securely (like oil and ICE for example) - insert small wedge and hammer with vigor - volia' - two messed up pieces of wood - EV's, niche now, power play in the near future -
    24 Apr 2014, 09:52 PM Reply Like
  • From an European point of view
    , contributor
    Comments (46) | Send Message
     
    A new technology or paradigm cannot be disruptive if it produces the same products orservices at a higher price .
    So far , you could argue that an EV is cooler or cleaner , even is the pollution is created elsewhere , or more "torquy" that an ICE .
    But is this suffisant to justify the very big price difference .
    Dacia , a low cost subsidiary of Renault sells 4x4 cars( in fact the look is 4x4 but it works 2x4) in Europe at 10k Euros .
    Even if a futur Tesla model could be sold at 35 k USD , you see the size of the gap .
    Unless a breaktrough in the electricity storage tech happens , EV is a niche product .
    25 Apr 2014, 03:29 AM Reply Like
  • jim15936
    , contributor
    Comments (1430) | Send Message
     
    Is the China tail going to wag the US dog? Tesla may need to create a China-only company, a Tesla China, to deal with the "sticky issues" of the country. Locals often require fishy percentages. Graft is illegal, its just a "consulting fee" to prevent the state from shutting you down. Uh-huh. It always comes back to bite you in the butt one day, under US laws. Using a separate shell is like having your stunt double to sleep with a movie porn star who might carry the disease of total government control. That shell can also raise its own China-only money. We shareholders don't want the China tail to wag the US dog. Better to not go there...
    22 Apr 2014, 06:10 PM Reply Like
  • Justin Chiou
    , contributor
    Comment (1) | Send Message
     
    Dealing business in China is a very very special issue.

     

    I work for Geely Group at 2003 and dealing training business from 2003 till now in China.
    My experiences included mechanical, parts, sales and marketing. And I also in charged branding such as Lancia, Jaguar, Lotus and Ferrari and so on, while I was in Taiwan from 1981 to 2000.
    I also paid attention on EV at these years.
    22 Apr 2014, 08:45 PM Reply Like
  • Doc's Trading
    , contributor
    Comments (1847) | Send Message
     
    TSLA...technical update...... I remain without direction still... no change in advise to stay flat for now....
    more later.....
    26 Apr 2014, 01:32 PM Reply Like
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