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Arrangement could enable electric-car maker to slash production costs, but would still likely incur 25% import tariff.

Tesla Inc. has reached an agreement with the Shanghai government to set up its own manufacturing facility in the city, the Wall Street Journal reported Sunday, citing people briefed on the plan. Tesla previously said it planned to define its plans more clearly by the end of the year.

https://www.bloomberg.com/news/arti...-reach-deal-on-wholly-owned-facility-wsj-says
 

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Seems China's appetite for BEV's is going to exceed that here in the US for a while. Who would have thought.
 

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Things that come to mind right away:

The thread title presumes quite a bit, like the viability of Tesla going forward from where they're at for openers. They're planning on funding a completely new overseas manufacturing facility now? With what?

Anyone who laments over the soullessness of global capitalism cannot rightfully laud this announcement.

Tesla can certainly avoid labor unionizing.
They can literally work employees until they pass out with little or no punishment. It's common to set a 60 hour work week in China as standard.
Well that solves 2 of their current issues.
 

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You can't be anything other than a minor player in the auto industry if you don't compete in China, and the only way to compete in China is to build your vehicles in China. Agree that funding will be an issue, as will the woeful state of the electrical infrastructure. Add on the fact that most people who can afford high end cars live in hi-rises, and the challenges become apparent.

Can't fault Tesla for trying. At the moment Tesla is successful in the US (really California), much less successful in Europe (even with Norway), and a bust in China. It needs to do better in the latter two regions.
 

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It makes sense...since Tencent, Asia’s second highest valued tech firm, has bought a five percent share in Tesla back in March. According to a filing, the Chinese firm scooped up 8,167,544 shares for around $1.7 billion to become one of Tesla’s largest shareholders.

But...the Agreement still won’t prevent 25 percent tax on cars sold in China outside the investment zone...
 

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Seems China's appetite for BEV's is going to exceed that here in the US for a while. Who would have thought.
In just a few years, China has become the world’s biggest electric vehicle market, with the help of subsidies. It saw 336,00 new electric car registrations (pdf, p.12) in 2016, according to the International Energy Agency. That includes both battery-only and hybrid models. Including other types of vehicles, China says it sold a total of half a million “new energy” vehicles last year. This month, China also said that it would eventually phase out sales of all fossil-fuel cars.
That fast-growing market, however, is also producing batteries at a faster rate too. The average lifespan of a lithium-iron phosphate (LFP) battery, the dominant type in China’s electric vehicles, is around five years, according to Li Changdong, chairman of the Hunan-based Brunp group, China’s top electric car battery recycler in 2016 (link in Chinese). Most batteries installed on electric vehicles during the 2012 to 2014 period will be retired on a large scale (link in Chinese) around 2018, Li told the Beijing-based newspaper Economic Information Daily.

And now the rest of the story...:rolleyes:

In 2020, nearly 250,000 metric tons (276,000 tons) of batteries, or 35 gigawatt-hours of batteries, are set to be retired—nearly 20 times those depleted in 2016, GaoGong Industry Institute, a Shenzhen-based electric car industry research firm, told Quartz.

The battery is the heart of the electric vehicle industry, and the country needs a well-established battery recycling system, Xin Guobin, a top industry and tech official, told a national forum for the battery-powered engine industry Tuesday (link in Chinese) (Sept. 26). But recycling these batteries isn’t easy, due to the sophisticated chemical procedures involved. If it’s not done properly the heavy metal contained in the battery can lead to contamination of soil and water.


https://qz.com/1088195/chinas-boomi...bout-to-run-into-a-mountain-of-battery-waste/

According to China’s 2015 electric vehicle battery policy, car manufacturers are responsible for recycling their batteries (link in Chinese). But many auto manufacturers often leave the responsibility to battery suppliers, who find it hard to afford the cost of building a national recycling network, noted the Economic Information Daily. For now, China’s battery recycling industry is relatively small and scattered, and recycling operating costs are high, Gao Xiaobing, director of the lithium battery study center at GaoGong, told Quartz. That’s discouraging more players from entering the business.

Meaning they have "kicked the can down the road" for dealing with the recycling of those batteries...I see China having to deal with this in the near future the way the US did with SuperFund sites...:(
 

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One perspective.

GROWTH


SUPERCHARGERS -- density and growth just in Oct




INTERESTING VIDEO
 

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Did you guys see the SC concentration in China?!?! The circle radius is set to 125 miles in this picture. Look at those 4 spots. Wow.
 
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