Tesla reportedly made deal to open a manufacturing facility in Shanghai

[onebyone]

Tesla has reportedly made a deal with the government in Shanghai to open up a manufacturing facility in the city's trade-free zone, the Wall Street Journal reports.



Foreign car-makers traditionally partner with local manufacturers, but that will reportedly not be the case with Tesla. Instead, Tesla will own the entire factory. That means Tesla will be able to cut some costs of production and ultimately the sale price of Teslas in China, but it will likely still be responsible for paying China's 25 percent import tariff.



The timing of the official announcement is unclear. I've reached out to Tesla and will update this story if I hear back.

• This article originally appeared on TechCrunch.

 

[onebyone]

https://finance.yahoo.com/news/tesla-reportedly-made-deal-open-175847859.html

BuJ_Moose
4 hours ago
Tesla and Musk have received Millions if not Billion in Tax Credits and Government subsidies at the taxpayer's expense and this is how they show their gratitude by sending jobs to China. Musk is just lucky that he is a LIBERAL DEMOCRAT because he might actually get some bad PR from the press if he had been a conservative.

Brian
4 hours ago
Now you know why Tesla cut it's workforce in the US. It was all about the $$ and shipping jobs overseas.

DAM
4 hours ago
Make China Great again !!!...Why....???

By high-hank on

Joseph
4 hours ago
So sad. Even this company now sells out to the Chinese

Rich
4 hours ago
So cut jobs here and open in China? US should ban them from importing Tesla products!!

 

[shadows888]

Tesla has reportedly made a deal with the government in Shanghai to open up a manufacturing facility in the city's trade-free zone, the Wall Street Journal reports.



Foreign car-makers traditionally partner with local manufacturers, but that will reportedly not be the case with Tesla. Instead, Tesla will own the entire factory. That means Tesla will be able to cut some costs of production and ultimately the sale price of Teslas in China, but it will likely still be responsible for paying China's 25 percent import tariff.



The timing of the official announcement is unclear. I've reached out to Tesla and will update this story if I hear back.

• This article originally appeared on TechCrunch.

It didn't have to partner with a local manufacturer because it's going to be located in a "Free Trade Zone" in Shanghai hence the 25% Tariff.