CCTV: the time for Tesla to settle in Shanghai

CCTV: the time for Tesla to settle in Shanghai

Original title: Tesla arrived at this point in time.

Tesla is going to settle down in Shanghai.

In July 10th, the Shanghai municipal government and the US Tesla company signed a memorandum of cooperation. Both sides will deepen cooperation and exchange in the fields of technological innovation, industrial development and other fields, accelerate the process of globalization and boost the development of high-end manufacturing in Shanghai.  

Tesla also signed a pure electric vehicle investment agreement with the Shanghai Port Management Committee and Lingang group. Tesla company will be wholly owned by the company in the port area to build the research and development, manufacturing, sales and other functions of the Tesla super factory. The project is planned to produce 500 thousand pure electric vehicles. It is the largest foreign manufacturing project in Shanghai history.

Tesla has also become the first wholly owned car brand in China in the field of new energy vehicle manufacturing.  

Tesla CEO Elon Musk said that Tesla will build the first super factory outside the United States in Shanghai and the most advanced electric car factory, hoping to make it a model for sustainable development. Mask also gave the factory a name full of sci-fi, called Dreadnought.  

In July 11th, Shanghai Municipal Commission deputy director Huang Ou said that the 500 thousand Tesla pure electric vehicle project is the largest foreign manufacturing project in Shanghai history. The Shanghai municipal government will do the corresponding support to help them build and put into production as soon as possible. In the light of the question of whether Tesla technology will be transferred to Shanghai enterprises, Huang said that technology transfer is the agreement between enterprises and enterprises.

China opens wider to the outside world and liberalized foreign investment in auto industry

In the Boao Forum on Asia in April this year, President Xi Jinping announced a series of measures to expand opening up in his speech, which referred to "easing foreign capital stocks as soon as possible, especially the restrictions on foreign investment in the automotive industry".

Subsequently, the national development and Reform Commission (NDRC) gave a timetable to liberalising the foreign capital shares of the auto industry - the limitation on the cancellation of the foreign shares of the special vehicles and new energy vehicles in 2018; the cancellation of the foreign shares of the commercial vehicles in 2020; the cancellation of the foreign shares of the passenger car in 2022, and the cancellation of the two restrictions on the joint venture. Through the 5 year transition period, the auto industry will be lifted completely.  

China has relaxed restrictions on foreign capital shares in industries such as automobiles. China has demonstrated its determination and strength to expand its opening with practical actions.

Trade disputes speeding up Tesla in the China Construction Plant

China is Tesla's second largest consumer market in the world and is the second largest consumer market of Tesla Model 3.  

However, as Sino US trade frictions are intensifying, Tesla's construction of China is pressing.  

In July 1st of this year, the Ministry of finance of our country had just lowered the import duty on imported cars and reduced the import duties of the whole vehicle from 25% to 15%, but only five days later, that is, from July 6, 2018, China and the United States trade war "open", the US tax on China's $34 billion US goods in the United States, one of China's counter-control measures is Imported cars originating in the United States are charged with 25% tariff.  

In this context, the current import of automobile tariffs in the United States has risen to 40%, and the import of automobile tariffs in other countries has been maintained at 15%. This policy has been killed by the policy, which is also a catalyst for speeding up the pace of "domestic" in China.

According to the Ministry of industry and information planning, in 2020, China's new energy vehicle sales ratio to reach 10%, nearly 3 million, such a large market, Tesla naturally "heartfelt". The construction of a factory in China is twice the result of half the effort.

The Shanghai factory in Tesla has a lot of "real benefits"

Tesla has a lot of cost advantages in China, in other words, Tesla can fully use a higher price ratio to snatch Chinese market share, and benefit from the Chinese consumers, in addition to Tesla himself.  

First of all, tariff reductions can be waiver in factories in China. In the context of Sino US trade frictions, China imposed a 25% tariff on imported cars originating in the United States. After the establishment of a factory in China, the 25% tariff costs of "homemade" Tesla, at least, could be saved.

Second, China's factories can save a large amount of freight. Don't look down on the cost of transportation. According to the price announced in 2014 when Tesla entered China, the transportation and handling cost of each Model S was US $3600. When you buy a car, give you a discount of 25 thousand. Are you upset?  

Thirdly, Shanghai has the most sound automotive supply chain system in the world. There are top suppliers of BOSCH, ZF, Delphi and mainland around Shanghai. The automobile industry is quite complete. Compared with Silicon Valley, which lacks the base of automobile industry, it can provide strong supply chain support. The cost of supply chain can be reduced a lot.

Finally, building factories in China can reduce manpower costs. For example, an assembler in Shanghai, for example, is paid about 35 yuan for an assembly worker, while the average American auto assembly worker is about 100 yuan ($15.84). Moreover, Mask has also revealed that Tesla workers have higher hourly wages than the average level of the industry. It can not only reduce costs, but also promote employment and mutual benefit.  

Of course, there is a more attractive benefit. Despite Tesla's sole proprietorship in China, it does not mean that capital from China can not participate in investment. Last year, the Tencent took a $1 billion 800 million stake in Tesla's 5%, and the domestic interest in Tesla's capital is not only a Tencent family, which is also a good news for Tesla, which is still unprofitable and needs financing so far.  

So, for Tesla, the establishment of a wholly owned new energy car factory in China can either bypass the tariff problem, enjoy the market dividend alone, and improve the production. Why not?

However, owners of new energy indicators should not consider Tesla. According to the fastest pace of construction in China, it will take at least two to three years to complete the initial installation of infrastructure and equipment. It will take some time to buy the "made in China" Tesla in terms of running in with local suppliers and production line debugging.

Is the crisis of domestic electric cars coming?

Tesla is building a factory in Shanghai. There are many people who worry about "wolf coming". What about our domestic car?

Indeed, Tesla has the advantage of brand, workmanship and endurance compared with Chinese brand pure electric vehicles, which is enough for domestic brands to form an oppressive posture. However, the world's best new energy vehicles are gathering in the Chinese market, which is also conducive to turning the Chinese market into a real battleground of the global development of new energy vehicles, forcing local cars to iterate more quickly on new technologies and new products, to be in danger and to be more opportunities.

The time of the establishment of the Shanghai factory in Tesla is meaningful

Tesla's time to build factories in Shanghai coincided with the launch of a "trade war" between the United States and China to prevent us manufacturers from turning overseas. Last month, the US motorcycle manufacturer Halley Davidson Co has said it wants to transfer production to overseas as a response to Trump's trade policy.

At that time, Trump repeated 5 tweets to explain the incident and threatened Harley. At this time, "made in America" Tesla is going to settle in Shanghai. Trump doesn't know how to feel.

In the context of trade conflicts with the United States, China is using its strength to attract investment in the global automotive industry. This proves that open markets can generate investment and create job opportunities. At the same time, Tesla's super factory is a combination of R & D, manufacturing, sales and other functions. Tesla is willing to deepen cooperation in technical innovation, which fully shows that technical cooperation is voluntary by the enterprise, and there is no problem of compulsory technology transfer at all.

Musk came to Shanghai with Tesla, and printed the words: the broad Pacific has enough space to accommodate two big powers.  

Responsible editor: Gui Qiang

Waonews is a news media from China, with hundreds of translations, rolling updates China News, hoping to get the likes of foreign netizens