Tesla Model S parked in Guangzhou (China) – Photo: llee_wu (Flickr) CC BY ND
Tesla could expand its business performance in the chinese market if they can reduce their prices, what about the third part? Because that implies manufacture within the country, but Tesla may not be set for your account, must pass through the hoop of china’s legislation.
That last implies partnering with a local manufacturer, and form a joint venture (joint-venture), of which Tesla may not have more than half of shares. In addition, you need to share technology and knowledge with their guests. In other words, what has been the blackmail chinese to everything foreign manufacturer.
Elon Musk, head of Tesla, has said that in two years you could already be in production in march in that country. Musk does not say the things to say, is already in talks with more of a local manufacturer to the association. It has not made an official announcement of the full-scale implementation in China, but it is the previous step to recognize it.
The network of supercargadores is sufficient to meet travel in the eastern region of the country, the most populated and industrialized
In the first nine months of the year, have been sold something over 3,000 Model S in China, a number that would have risen to be able to offer more competitive pricing, without as many import tariffs. China protecting its car industry, that would have been eliminated in another way.
The sales are not going as well as they should in the asian country, despite the fact that the authorities are making efforts to bolster alternative models. To this day, Tesla has 10 “dealers” (Tesla Stores) within the asian country. Tariffs are more important to a brand as this one for Rolls-Royce, with customers much more affluent.
From here to two years, the factory on chinese soil might not just produce the Model S and Model X, also the berlina media that is also in development Model 3. With a more affordable price, sales could be very lucrative for Tesla in terms of benefits.
Tesla Model S
On the european continent, there will soon be local production, for the moment, the only place outside of the united States where Tesla has production. Tesla has the objective of reaching 500,000 units per year in 2020, a goal without a doubt ambitious for a manufacturer so young, even for Tesla.
The company started with a sporty electric, based in Lotus, and has continued with two high-end models, Model S and Model X. The following steps to increase the volume are obviously producing more economical models and of a smaller size. China is the first global car market, then manufacturing there seems to be a logical step.
But this step also has its negative part. All of the manufacturers that have been implemented in China have spent huge amounts of know-how to their partners, what has the law; in the medium and long term can be a great threat. The consequences of this transfer of technology is much more noticeable in the future, but as of the moment, business is business.