How will Tesla do in China When Gigafactory 3 is up?
28. April 2019 by Matt Pressman
Originally published on EVANNEX .
When it comes to electric vehicles, China has played a leading role in the world stage. Chinese EV companies have flourished. And the country's car buyers are increasingly fascinated by going electric. Now, Tesla is ready for itself for a great pressure in China.
Teslas Shanghai Gigafactory is an important feature of the company. ABC News Australia reporter Bill Birtles writes: "Even at Elon Musk's standards, his plan for Shanghai is ambitious: take 86 acres [21[ads1]3 acres] of muddy farmland on the outskirts of the city peninsula and start rolling out Chinese Tesla Model 3s within one year. "
Can Musk Make It Happen? "It's quite surprising how fast his company is developing here," said Jia Xinguang, a veteran Beijing-based auto analyst. "China doesn't have a man like Musk."
"Some believe that the production cost of a model 3 in China is only half of what is in the US. So if the base model currently costs up to $ 35,000 in the United States, Tesla might get it as little as $ 20,000 in China in the future, Xinguang says, adding, "This would definitely have a big impact on China's new energy vehicle market."
It's no wonder Musk is pushing so hard. Birtles reports, "More than half of the world's electric and hybrid cars are sold in China, and annual sales are growing rapidly, despite the decline in petrol cars. Electric vehicles (EV) now account for nearly 5 percent of China's massive car market, and the government wants them to count on one in five new cars sold in 2025. "
To this end, Cui Dongshu, Secretary-General of China's Passenger Association "Experts say," I don't think it's risky for Elon Musk to make such a big investment in China. "Of course, Chinese Premier Li Keqiang even stated that Musk was permanently resident when they met in January.
, Tesla faces severe competition from home users, and it is reported that "China has more than a dozen companies that produce hybrid or full electric vehicles – from state-owned companies to large private companies and less startups.
Companies like Warren Buffet -Backed BYD can pose "the biggest competitive threat. The Shenzhen-based company came close to matching Tesla's 245,000 deliveries last year, with the large amount of cars sold in China Another automaker, BAIC – owned by the Beijing government, produced the highest-selling model in the country. "
" The main reason I bought one is that a state aid halves the price and it is easier to get license plates for electric cars, says Beijing resident Kelvin Fung, who bought a BAIC in February. "Personally, I think Chinese cars are not as good as foreign brands, but they are pretty cheap," he said.
To this end, "Reports of quality issues and questionable selection requirements have Further reinforced views that despite the enthusiasm of both government and domestic car markers, China is still not producing a genuine competitor to Tesla. "Charging and battery technology are also behind the Silicon Valley automaker.
" Elon Musk can design special products that capture people's hearts In contrast, electric cars designed in China are boring, says Beijing's auto analyst Jia Xinguang. "Chinese electric cars are not that fun."
About Author
Matt Pressman is about Tesla. He is a TSLA investor, ordered model 3, and loves to run the family model model S and model X company cars. As co-founder of EVANNEX, a family business specializing in aftermarket Tesla accessories, he has served as contributor / editor of Electric Vehicle University (EVU) and Owning Model S and Getting Ready for Model 3 books. He writes daily about Tesla, and you can follow his work on the EVANNEX blog.
