Tesla, made in China! Over half of Tesla cars were made and sold in China in 2021

[beijingwalker]

Tesla, made in China! Over half of Tesla cars were made and sold in China in 2021​

 

[Hamartia Antidote]

It's amazing Tesla can do so well in China while numerous other Chinese EV companies have failed.

Bloomberg - Are you a robot?

www.bloomberg.com

Deserted Factories Show How China Electric Car Boom Went Too Far​

• At least a dozen EV makers bankrupt, restructured in past year
• Sector favored by Beijing seeing ‘classic capitalist shakeout’

Visitors to Byton Ltd.’s website are greeted with color-saturated images of shiny electric cars gliding along manicured streets. Those paying a visit to the automaker’s factory in Nanjing, eastern China may be less impressed. The plant is modern and huge, gleaming under the hot summer sun. But there’s total silence. Production has been suspended since the pandemic began and there’s no one around except for a lone security guard.

It’s a similar situation across town at Bordrin Motors. Weeds dot the factory’s perimeter and there’s a court notice pasted to the main gate announcing the electric carmaker’s bankruptcy.

Bordrin and Byton represent the flip side of China’s EV success. While home-grown stars like Nio Inc. and Xpeng Inc. have gone on to raise billions of dollars and are now selling cars in numbers that rival Tesla Inc., scores more have fallen by the wayside, unable to raise the crazy amounts of capital needed to make automobiles at scale.

In many cases, they were lured into existence by provincial governments dangling cash and other incentives to make Beijing’s dream of turning China into an EV powerhouse a reality. Local authorities helped manufacturers set up factories that promised jobs and development -- if they succeeded. But the tide began to turn in November, when regulators asked regional governments to review and report back on the scale of their support for the auto industry.

Alarmed by unbridled investment in the sector -- and the bankruptcies and zombified factories that came with it -- Beijing is applying the brakes.

“We have too many EV firms,” Xiao Yaqing, China’s minister for industry and information technology, told reporters Sept. 13. Mergers and acquisitions will be encouraged as the market needs to be further concentrated, he said. The government is also looking at setting production limits for the EV sector, people familiar with the matter told Bloomberg News this month, with provinces unable to green-light new projects until surplus capacity comes online. Resources will also be channeled into a few select EV hubs.

The moves are a potential warning sign for investors who have poured money into electric carmakers and the technologies that support them over the past year.

Chinese EV Maker Once Worth More Than Ford Wipes Out $80 Billion

There are some 846 registered automobile manufacturers in China, and more than 300 of them churn out new-energy cars, loosely defined as electric vehicles or plug-in hybrids. The vast majority are names unrecognizable elsewhere. In 2020 alone, the country added new production capacity of around 5 million units, about four times the actual number of EVs sold in China that year. According to regulators, almost half that capacity wasn’t in use.

Bordrin, founded by former Ford executive Huang Ximing in 2016, was targeting annual output of 700,000 cars across three factories. But it ran out of money and folded before making even one. Huang didn’t reply to messages seeking comment sent via WeChat.

China doesn’t have a public dossier of bankruptcies, but since last year, at least a dozen EV makers are known to have gone under or have had to be restructured to avoid insolvency.

“This is kind of the classic capitalist competitive shakeout,” said Gary Dvorchak, a Beijing-based managing director at investment advisory Blueshirt Group LLC. “You get a zillion companies and then you have an oversupply situation. The process of failing is typically a lot slower in China because companies get government support. But eventually, some have to die and the pain inflicted to get those deaths to happen can be high.”

Byton at least still exists. The carmaker, co-founded by former BMW AG and Nissan Motor Co. executives, suspended all domestic operations and furloughed staff in July last year as the pandemic made it tougher to get its business off the ground. Even before Covid, the company had encountered difficulties meeting announced deadlines on producing and delivering its first model, although its website still accepts reservations for cars.

‘Idle Capacity’​

Things started to look up this year, when Byton signed a strategic cooperation deal with iPhone maker Foxconn Technology Group in January (aided by the Nanjing Economic and Technological Development Zone) to start mass production of the Byton M-Byte SUV by the first quarter of 2022. But Foxconn has been withdrawing staff from the Nanjing plant after one of the carmaker’s biggest creditors started taking management control, Bloomberg reported in July, and last week, the Nikkei newspaper said the collaboration had been put on hold due to Byton’s worsening financial situation.

A representative for Byton declined to comment for this story.

Jiangsu province, where Nanjing is located, strove to become an EV hub, luring $32 billion of auto-industry investment in the six years through 2020. Now, it’s home to more than 30 car manufacturers. But it became the focus of a Beijing-ordered probe earlier this year, which found some local authorities had been doling out tax breaks and land incentives to attract carmakers that were beyond the scope of government guidelines. This resulted in “salient problems of low production capacity utilization rates and idle capacity,” Jiangsu provincial officials said in a statement in February, without elaborating.

“Local governments had high expectations for the development of new-energy vehicle companies, hoping to tap the opportunities of the sector and drive local economic expansion,” Cui Dongshu, secretary general of China Passenger Car Association, said in an interview. “Investors also saw huge profit potential. This has resulted in surplus capacity.”

Yinlong New Energy Co.’s Nanjing factory broke ground in 2017 with a total planned investment of 10 billion yuan ($1.6 billion). Output was set at 30,000 new-energy commercial vehicles, mainly electric buses, and there were EV battery making plans too. Production was due to start in 2018 but today the plant is all but abandoned. Trash has piled up along its walls and roads connecting buildings inside are deserted, its entrances barricaded.

The company’s biggest shareholder, Gree Electric Appliances Inc., said there’s still scope for collaboration, either in bolstering the carmaker’s capacity utilization and competitiveness, or in pushing its battery technology.

Some of China’s established automakers are watching all of this with a sense of inevitability. Zhejiang Geely Holding Group Co., one of the nation’s biggest privately owned carmakers with a range of brands spanning mass-market vehicles to ultra-luxury racing cars made by Lotus -- which it controls -- sees a natural cycle playing out, and one that will involve some casualties.

“Some people rush to build one, two, three, five factories, even though their first car isn’t yet on the market,” Group Lotus Plc Chief Executive Officer Feng Qingfeng said.

“When everybody thinks it’s easy to make cars, people dive into car making. When they realize the car business isn’t that easy, they stop investing,” he said. “It’s the invisible hand of the market economy commanding order.”

 

[beijingwalker]

It's amazing Tesla can do so well in China while numerous other Chinese EV companies have failed.

Bloomberg - Are you a robot?

www.bloomberg.com

Deserted Factories Show How China Electric Car Boom Went Too Far​

• At least a dozen EV makers bankrupt, restructured in past year
• Sector favored by Beijing seeing ‘classic capitalist shakeout’

Visitors to Byton Ltd.’s website are greeted with color-saturated images of shiny electric cars gliding along manicured streets. Those paying a visit to the automaker’s factory in Nanjing, eastern China may be less impressed. The plant is modern and huge, gleaming under the hot summer sun. But there’s total silence. Production has been suspended since the pandemic began and there’s no one around except for a lone security guard.

It’s a similar situation across town at Bordrin Motors. Weeds dot the factory’s perimeter and there’s a court notice pasted to the main gate announcing the electric carmaker’s bankruptcy.

Bordrin and Byton represent the flip side of China’s EV success. While home-grown stars like Nio Inc. and Xpeng Inc. have gone on to raise billions of dollars and are now selling cars in numbers that rival Tesla Inc., scores more have fallen by the wayside, unable to raise the crazy amounts of capital needed to make automobiles at scale.

In many cases, they were lured into existence by provincial governments dangling cash and other incentives to make Beijing’s dream of turning China into an EV powerhouse a reality. Local authorities helped manufacturers set up factories that promised jobs and development -- if they succeeded. But the tide began to turn in November, when regulators asked regional governments to review and report back on the scale of their support for the auto industry.

Alarmed by unbridled investment in the sector -- and the bankruptcies and zombified factories that came with it -- Beijing is applying the brakes.

“We have too many EV firms,” Xiao Yaqing, China’s minister for industry and information technology, told reporters Sept. 13. Mergers and acquisitions will be encouraged as the market needs to be further concentrated, he said. The government is also looking at setting production limits for the EV sector, people familiar with the matter told Bloomberg News this month, with provinces unable to green-light new projects until surplus capacity comes online. Resources will also be channeled into a few select EV hubs.

The moves are a potential warning sign for investors who have poured money into electric carmakers and the technologies that support them over the past year.

Chinese EV Maker Once Worth More Than Ford Wipes Out $80 Billion

There are some 846 registered automobile manufacturers in China, and more than 300 of them churn out new-energy cars, loosely defined as electric vehicles or plug-in hybrids. The vast majority are names unrecognizable elsewhere. In 2020 alone, the country added new production capacity of around 5 million units, about four times the actual number of EVs sold in China that year. According to regulators, almost half that capacity wasn’t in use.

Bordrin, founded by former Ford executive Huang Ximing in 2016, was targeting annual output of 700,000 cars across three factories. But it ran out of money and folded before making even one. Huang didn’t reply to messages seeking comment sent via WeChat.

China doesn’t have a public dossier of bankruptcies, but since last year, at least a dozen EV makers are known to have gone under or have had to be restructured to avoid insolvency.

“This is kind of the classic capitalist competitive shakeout,” said Gary Dvorchak, a Beijing-based managing director at investment advisory Blueshirt Group LLC. “You get a zillion companies and then you have an oversupply situation. The process of failing is typically a lot slower in China because companies get government support. But eventually, some have to die and the pain inflicted to get those deaths to happen can be high.”

Byton at least still exists. The carmaker, co-founded by former BMW AG and Nissan Motor Co. executives, suspended all domestic operations and furloughed staff in July last year as the pandemic made it tougher to get its business off the ground. Even before Covid, the company had encountered difficulties meeting announced deadlines on producing and delivering its first model, although its website still accepts reservations for cars.

‘Idle Capacity’​

Things started to look up this year, when Byton signed a strategic cooperation deal with iPhone maker Foxconn Technology Group in January (aided by the Nanjing Economic and Technological Development Zone) to start mass production of the Byton M-Byte SUV by the first quarter of 2022. But Foxconn has been withdrawing staff from the Nanjing plant after one of the carmaker’s biggest creditors started taking management control, Bloomberg reported in July, and last week, the Nikkei newspaper said the collaboration had been put on hold due to Byton’s worsening financial situation.

A representative for Byton declined to comment for this story.

Jiangsu province, where Nanjing is located, strove to become an EV hub, luring $32 billion of auto-industry investment in the six years through 2020. Now, it’s home to more than 30 car manufacturers. But it became the focus of a Beijing-ordered probe earlier this year, which found some local authorities had been doling out tax breaks and land incentives to attract carmakers that were beyond the scope of government guidelines. This resulted in “salient problems of low production capacity utilization rates and idle capacity,” Jiangsu provincial officials said in a statement in February, without elaborating.

“Local governments had high expectations for the development of new-energy vehicle companies, hoping to tap the opportunities of the sector and drive local economic expansion,” Cui Dongshu, secretary general of China Passenger Car Association, said in an interview. “Investors also saw huge profit potential. This has resulted in surplus capacity.”

Yinlong New Energy Co.’s Nanjing factory broke ground in 2017 with a total planned investment of 10 billion yuan ($1.6 billion). Output was set at 30,000 new-energy commercial vehicles, mainly electric buses, and there were EV battery making plans too. Production was due to start in 2018 but today the plant is all but abandoned. Trash has piled up along its walls and roads connecting buildings inside are deserted, its entrances barricaded.

The company’s biggest shareholder, Gree Electric Appliances Inc., said there’s still scope for collaboration, either in bolstering the carmaker’s capacity utilization and competitiveness, or in pushing its battery technology.

Some of China’s established automakers are watching all of this with a sense of inevitability. Zhejiang Geely Holding Group Co., one of the nation’s biggest privately owned carmakers with a range of brands spanning mass-market vehicles to ultra-luxury racing cars made by Lotus -- which it controls -- sees a natural cycle playing out, and one that will involve some casualties.

“Some people rush to build one, two, three, five factories, even though their first car isn’t yet on the market,” Group Lotus Plc Chief Executive Officer Feng Qingfeng said.

“When everybody thinks it’s easy to make cars, people dive into car making. When they realize the car business isn’t that easy, they stop investing,” he said. “It’s the invisible hand of the market economy commanding order.”

Many of them are pretty successful, and now Tesla is more like a Chinese company than America's

 

[Hamartia Antidote]

Many of them are pretty successful, and now Tesla is more like a Chinese company than America's

LOL! Tesla Models #2 and #3 in China but also #1 and #3 in the world.

Best-selling electric car models 2023 | Statista

Two car brands produced four of the five top selling electric cars worldwide in 2022. The BYD Han was the sixth most sold electric car in the world.

www.statista.com

GigaTexas and GigaBerlin opening.

Tesla, Elon Musk plan grand opening party for Austin facility in April

CEO Elon Musk confirmed the date this weekend, but didn't provide many details on plans for the event.

www.statesman.com

Tesla, Elon Musk plan grand opening party for Austin facility in April​

Tesla Giga Berlin Gets Permit from German Officials, Elon Musk to Dance on Grand Opening Party​

 

[beijingwalker]

LOL! Tesla Models #2 and #3 in China but #1 in the world.

Best-selling electric car models 2023 | Statista

Two car brands produced four of the five top selling electric cars worldwide in 2022. The BYD Han was the sixth most sold electric car in the world.

www.statista.com

View attachment 820982

Yes, as I mentioned, China cars just started, but advances very fast, as for Tesla, half of its cars sold last yearworld wide were made in China, now Tesla is more of a Chinese company than America's.

 

[Hamartia Antidote]

Yes, as I mentioned, China cars just started,

No, they didn't. BYD was selling passenger cars way before Tesla. In fact for years there were EV's sold in China and Tesla wasn't even in the top 10 as the Model S was just a footnote luxury car.

half of its cars sold last yearworld wide were made in China, now Tesla is more of a Chinese company than America's.

Only because of high demand..but don't worry the two new factories will fix that.

 

[beijingwalker]

No, they didn't. BYD was selling passenger cars way before Tesla. In fact for years there were EV's sold in China and Tesla wasn't even in the top 10 as the Model S was just a footnote luxury car.

BYD's sale still goes up year on year, but many newly emerged brands now can give it a run for its money, many internet companies now waded into this sector of the industries in China, the competition can be incredibly firece in the coming years.

Only because of high demand..but don't worry the two new factories will fix that.

You mean the new mega Shanghai factory and Beijing design center?

 

[Hamartia Antidote]

BYD's sale still goes up year on year, but many newly emerged brands now can give it a run for its money, many internet companies now waded into this sector of the industries in China, the competition can be incredibly firece in the coming years.


You mean the new mega Shanghai factory and Beijing design center?

Why is the coming years so special? There's been a significant number of electric vehicles being sold in China since at least 2012. Are you saying the last 10 years the EV makers have been doing nothing?

Oh wait yes China is very slow to come up to speed with technology so ok i see your point.

You mean the new mega Shanghai factory

No, Shanghai is small. GigaBerlin for example is 500,000 a year to start while mega Shanghai was only 400,000 to start. But Tesla is dominating in China and Chinese EV companies are faltering so building a second factory in China would be a profitable move.

Beijing design center?

yes, China will be designing small compact cars for emerging economies...including theirs. While bigger cars will be handled in the west.

 

[beijingwalker]

Why is the coming years so special? There's been a significant number of electric vehicles being sold in China since at least 2012. Are you saying the last 10 years the EV makers have been doing nothing?

in 2012 not many people can afford cars in China, now cars are as common as bikes Chinese used to use to get around

No, Shanghai is small. GigaBerlin for example is 500,000 a year to start while mega Shanghai was only 400,000 to start. But Tesla is dominating in China and Chinese EV companies are faltering so building a second factory in China would be a profitable move.

China now produces half of Tesla car globally, doubling this number is nothing that can be called small.

Tesla plans new factory in Shanghai that would double China production to a million cars a year​

Tesla plans new factory in Shanghai to double capacity as demand soars

The US carmaker will soon begin construction of a new plant near its Gigafactory 3 that will double capacity in China to a million cars a year, said two sources.

www.scmp.com

yes, China will be designing small compact cars for emerging economies...including theirs. While bigger cars will be handled in the west.

How do you know what they design? any links for inside info other than senseless blabbering?

Tesla China Design Center will reportedly land in Beijing

Tesla China’s Design Center will reportedly land in the capital of the country, Beijing, according to government documents and The Wall Street Journal. In 2020, Tesla said it would build a Design Center in China that would be responsible for creating “International EVs.” Tesla began hiring for...

www.teslarati.com

Oh wait yes China is very slow to come up to speed with technology so ok i see your point.

Lol, Yes, China is very slow in everything, hopefully you Americans keep believing it.

 

[Hamartia Antidote]

How do you know what they design? any links for inside info other than senseless blabbering?

Tesla zeroes in on Beijing for design centre to build Chinese-style cars

Tesla plans to set up a design centre in Beijing to develop cars specifically for the Chinese market, stepping up plans to consolidate its foothold in the mainland.

www.scmp.com

in 2012 not many people can afford cars in China, now cars are as common as bikes Chinese used to use to get around

BYD had a car back in 2009...they claimed the first family sedan 100% EV ever seen in the WORLD (hooking Warren Buffet). This is way before Tesla even made their first Tesla Model S.

2010 Shenzen. BYD EV taxi ride.

The BYD EVs went straight to taxi fleets and some to consumers. However they got no traction in the world market.

 

[American College Student]

in 2012 not many people can afford cars in China, now cars are as common as bikes Chinese used to use to get around


China now produces half of Tesla car globally, doubling this number is nothing that can be called small.

Tesla plans new factory in Shanghai that would double China production to a million cars a year​

Tesla plans new factory in Shanghai to double capacity as demand soars

The US carmaker will soon begin construction of a new plant near its Gigafactory 3 that will double capacity in China to a million cars a year, said two sources.

www.scmp.com

How do you know what they design? any links for inside info other than senseless blabbering?

Tesla China Design Center will reportedly land in Beijing

Tesla China’s Design Center will reportedly land in the capital of the country, Beijing, according to government documents and The Wall Street Journal. In 2020, Tesla said it would build a Design Center in China that would be responsible for creating “International EVs.” Tesla began hiring for...

www.teslarati.com

Lol, Yes, China is very slow in everything, hopefully you Americans keep believing it.

The Reason Chinese Manufacturing is now fast and efficient and their American counterparts are Not so much these days is simple. Back in the 1980s and 1990s American Corporate leaders and Government politicians outsourced Most of our Manufacturing and tech over to you guys. They did this because they didn't want to Pay American workers because doing so would undercut their profits. Once Chinese technical know-how caught up with the Americans you now had a qualitiative and quanitative advantage thus becoming an economic juggernaut.

 

[Hamartia Antidote]

They did this because they didn't want to Pay American workers because doing so would undercut their profits.

The US isn't the only one outsourcing.
Much of this has to do with environmental concerns that swept the West in the 1960's...like Silent Spring and Earth Day.

Clean water, air, and land laws passed under huge public pressure.

To get around this Nixon went to Mao to offload polluting industries offshore since China had no environmental concerns and honestly just didn't care at all. Other western countries/companies followed the US lead.

Then people started doing NIMBY for all manufacturing and the companies happily obliged because labor costs were low anyways.