Finally, A Feasible Tesla Roadmap To Asia

|
About: Tesla, Inc. (TSLA), Includes: KNDI
by: Robert Reinicke
This article is exclusive for subscribers.
Robert Reinicke
Long only, Growth, medium-term horizon, tech
Summary

Tesla must become a major player in Asia, by far the world’s largest and fastest growing EV market.

Tesla needs to start producing EVs in China to avoid exorbitant import duties and taxes, to minimize labor costs, and to reap carbon credit exchange benefits.

Cash-strapped Tesla simply can’t afford a large 50-50 JV (Joint Venture) investment with a Chinese company to produce their EVs in China, as currently required by Chinese law.

Even if the JV requirement is eliminated, Chinese contractors won't risk huge capital investment because of Tesla’s shaky financials.

This article describes a feasible Business Plan to fund the large upfront capital costs needed to build mass market priced Tesla EVs in China.

This proposed Business Plan would enable Tesla Motors (NASDAQ:TSLA) to produce reasonably priced Model 3 EVs (electric vehicles) for the huge Asian region EV market without any capital investment. Other China business venture